US markets rose overnight, with The Dow Jones Industrial Average climbing 0.6%, the S&P 500 Index was also up by 0.6% and the Nasdaq Composite Index rose by 0.8%. Markets closed early and will be closed tomorrow for the 4th July Independence Day holiday.
In the US, new orders for factory goods rose more than expected in May – a positive sign for manufacturers, which spurred the markets higher.
European indices were also ahead, with the UK’s FTSE 100 index rising by 0.8%, the German DAX up by 1.2% and the French CAC 40 adding 1%, on investors’ hopes that central banks will move to encourage global growth.
The Australian dollar was slightly higher, currently trading at around 102.8 US cents.
Commodities markets were also higher, with gold rising 1.5% to US$1619.90 an ounce. Brent crude oil rose above US$100 a barrel, as Iran’s nuclear program sparked concerns about oil supply. Is this just a case of no immediate news around Europe’s debt issues, so investors have found something else to worry about?
Early gains again?
The ASX SPI futures closed up 11 points this morning, indicating the S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) could show an early rise – similar to yesterday, when the SPI futures rose 15 points.
The Australian Bureau of Statistics is today expected to release a report on May retail data. Retailers including Harvey Norman Holdings Limited (ASX: HVN), Myer Holdings Limited (ASX: MYR), JB Hi-Fi Limited (ASX: JBH) and David Jones Limited (ASX: DJS) could be in focus on the back of that data.
The Australian Financial Review is continuing to report that miners are tightening up costs. BHP Billiton Limited (ASX: BHP) recently announced that it wasn’t approving any major projects until December 2012. The paper reported yesterday that Rio Tinto Limited (ASX: RIO) was looking to cut support and service costs by 10%.
There is always something to worry about – whether its commodities prices, recessions, global conflicts or financial crises – and that’s been the case every year for many years. Come rain, hail or shine, Foolish investors should stick to the tried, tested and successful strategy of buying high quality companies at cheap prices.
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Motley Fool writer/analyst Mike King owns shares in JB Hi-Fi and BHP. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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