Strong leads push stocks higher
Australian shares have posted healthy gains in early trade afterwards US stocks rose on hopes the Federal Reserve will announce more stimulus measures, and European stocks climbed as Greece moved closer to forming a government and a Spanish debt sale met targets.
The News bid values ConsMedia at $3
The News bid values ConsMedia at $3.50 a share, or about $1.97 billion, and has the blessing of billionaire James Packer who holds a 50 per cent stake in the company through Consolidated Press Holdings.
Wall Street closed about 1 per cent higher on hopes that the US Federal Reserve, which begins a two-day policy meeting today, will announce another round of stimulus spending. The hopes were boosted on data which showed job openings in the US decreased in April by the most in nearly four years, the latest sign that the labor market is cooling.
In Europe, European markets gained more than 1.5 per cent in spite of German investor confidence plunging by the most in 14 years and Spanish borrowing costs remained at dangerous levels on concern over the nation's stricken banks and fast-rising debt.
‘‘The other reason the Aussie is performing so so then is that investors are hoping that European leaders are getting closer to forming a fiscal and banking union. We had comments from the EU president, who said that an economic union could probably happen by the end of the year.’’
Spanish government notes climbed, trimming seven days of losses, as the nation met its maximum target at a bill auction even afterwards speculation the country will need a sovereign bailout pushed up borrowing costs.
US treasuries fell for the first time in three days as the Federal Reserve opened a meeting amid speculation it may do more to boost the economy and investors bet European leaders will make progress on their debt crisis.
US stocks advanced, sending the Standard & Poor's 500 Index to the highest level in more than a month, as investors speculated the Federal Reserve will announce more measures to stimulate the world's largest economy.
The US Federal Reserve
European stocks were higher amid hopes of more stimulus measures from the US Federal Reserve and in spite of strains on Spain and poor investor sentiment in Germany.
Base metals have closed more often than not higher on the London Metal Exchange, gaining alongside equities and the euro as investors looked to the Federal Reserve’s rate-setting meeting for signs of furthermore economic stimulus.
The Australian sharemarket has closed lower as investors move their attention from Greece to Spain and upcoming meetings of the US central bank and leaders of the European Union.