Foolish Preview: A positive day on Wall Street, ASX poised to rise

US markets up overnight before 4th July holiday

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published July 4, 2012 9:34 am AEST

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 4^th 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%.

Foolish takeaway

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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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