need2know: Wall St steadies, eyes on RBA

Portugal’s PSI 20 index rose 0. 98 per cent to finish at 5854. 36 points after news of the EU-backed rescue plan for Banco Espirito Santo. Portugal will inject 4. 4 billion euros into BES, national bank governor Carlos Costa announced late on Sunday amid fears of a catastrophic bank run.

Copper rose as a rally in China‘s stock markets indicated improving prospects for demand in the world’s largest consumer of the industrial metal, although growing global supplies kept investors cautious.  Oil prices on both sides of the Atlantic climbed, as investors shifted their attention from worries about swelling supplies to concerns about ongoing violence in Libya and other global hotspots.

The “bailout for Banco Espirito Santo has helped reduce the risk of banking contagion in Europe so bank stocks are getting some extra relief,” said Jasper Lawler, a market analyst at CMC Markets. “The BES episode will not be soon forgotten though …

Gold fell as a bailout agreement to rescue Portugal’s largest listed bank and a better tone to the global economy reflected by a higher S&P 500 equities index lessened safe-haven buying in the yellow metal.

Local shares are positioned for slight gains at the opening on a positive lead from Wall Street ahead of the RBA‘s latest policy statement. • AUD at 93. 30 US cents, 95. 73 Japanese yen, 69. 55 Euro cents and 55. 37 British pence. • On Wall St, S&P 500 -0. 3%, Dow -0. 4%, Nasdaq -0. • In Europe, Euro Stoxx 50 -0. 1%, FTSE -0. 02%, CAC +0. 3%, DAX -0. • Spot gold down 0. 4% to $US1288. • Iron ore adds 0. 2% to $US95.

Read more here: SMH


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