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Australian stocks are expected to open strongly after US and European stocks surged on signs that European leaders are mustering an all-out assault on the eurozone debt crisis, and a soft reading of US economic growth on Friday raised hopes of further stimulus action from the US Federal Reserve.
On the ASX24, the SPI futures index was 47 points higher to 4220. The Aussie dollar is also stronger, getting close to $US1.05. In early trade today, the AUD touched $US1.0497, it's highest level since late March, before slipping back to $US1.0473. The local unit closed Friday $US1.042.
The gains on offshore markets to end last week came as the leaders of Germany and France added their weight to the battle to preserve the European single currency, issuing a joint statement promising to do everything they could to stop the 17-country bloc from breaking up.
The debt-wracked eurozone got further support yesterday when German Chancellor Angela Merkel and Italian Prime Minister Mario Monti "agreed that Germany and Italy will do everything to protect the eurozone".
In economics news on Friday, fresh data showed US economic growth slowed in the second quarter as consumers spent at their slowest pace in a year, increasing pressure on the Federal Reserve to do more to bolster the recovery.
Making news today
There is no major economics news scheduled for today.
In company news:
- Boss Resources general meeting
- Midas Resources June quarter update
- Success Resources Global extraordinary general meeting
Making news this week
- Tuesday: HIA new homes sales for June, ABS building approvals for June
- Wednesday: AiG/PWC performance of manufacturing index, ABS house price index for June quarter
- Thursday: ABS retail trade for June, RPData-Rismark house price index
- Friday: AiG Performance of Services Index
In the US this week
- Tuesday: S&P Case-Shiller home price index, Chicago PMI, consumer confidence
- Wednesday: Federal Open market Committee announcement on interest rates, ADP employment report
- Thursday: Jobless claims for the week of July 21, factory orders
How we fared last week
At the close on Friday, the benchmark S&P/ASX200 index was up 62.1 points, or 1.5 per cent, at 4,209.8, while the broader All Ordinaries index was up 60.6 points, or 1.45 per cent, at 4,234.4.
BusinessDay with agencies
