Global share markets are poised to go on rising this week in the wake of the dovish US Fed stance on interest rates, and despite the tensions in Iraq.
US shares rose by up to 1.4% last week and ended the week at new all time highs for the Dow and the S&P 500. European shares were up by around 0.3%, Japanese shares rose 1.7% and Australian shares rose squeezed out a modest rise of 0.3%.
Chinese shares fell 2.1% though, partly dragged down by worries about new company floats (which is a recurring worry).
That reversed the previous week’s gains of 2%.
Bond yields were flat to lower, thanks to the Fed’s post meeting statement last week and comments by chair, Janet Yellen that the central bank sees lower long term interest rates.
Oil was little changed at over $US106 a barrel in New York, but gold and metal prices had a rise.
The Aussie dollar finished around 93.88, down from the 94.04 USc from the week before.
Though US stocks saw modest gains on Friday, they were enough to push the S&P 500 and the Dow industrials to the new record closes.
The buying support was also enough to lift the Nasdaq Composite to its highest finish in 14 years.
Reuters pointed out that 330 companies hit 52-week highs on the New York Stock Exchange last week, against only 18 reaching new 52 week lows – a sure sign of the bubbling nature of investor interest.
It was the S&P 500’s third record closing high in a row, while the Dow surpassed its previous record close on June 10. For the week, the Dow rose 1%, the S&P 500 climbed 1.4% and the Nasdaq added 1.3%.
Friday’s close was the S&P 500’s 11th closing record of the year. It also hit an all-time intraday high above 16,978, eclipsing its prior intraday record reached on June 9.
US shares notch new records
In other markets, Asian stocks finished on a mixed note, and European markets were mostly lower.
In Australia, our market should start slightly higher today after the share price futures contract closed 10 points higher early Saturday morning.
That will follow the slide on Friday in the week of Thursday’s surprisingly big jump.
On Friday the ASX 200 fell 0.9% while the All Ordinaries fell 0.8% to end at 5401.60.
BHP ended the week 1.9% higher at $35.95 (despite the weak iron ore price), while Rio Tinto jumped 1.6% to $58.57. Fortescue Metals jumped nearly 4% to $4.22.
Woodside Petroleum shares fell 3.3% over the week, to end at $41.39, after Royal Dutch Shell sold down its stake at $41.35 per share in an offer to institutional investors.
Three of the big four banks also ended the week lower, after losses on Friday.
The Commonwealth Bank dropped 0.4% to $81.42, Westpac slipped 0.3% to $34.15 and the NAB fell 0.2% to $33.13.
In contrast, ANZ managed to eke out a gain for the week, up 0.7% to $33.98.
Friday, saw Westfield’s $70 billion restructure receive approval from investors.
Westfield Retail Trust shares finished the week 0.9% higher at $3.21, while Westfield Group shares rose 1.8% to $10.82.
Ten Network’s sales and costs downgrade saw the shares slide 18.3% to 24.5c.
