Markets

Australia shares seen up but financial year-end to cap gains

SYDNEY : Australian stocks are set to open higher on Wednesday as the global market mood swings towards optimism about

Published June 28, 2011 Updated June 28, 2011 11:40pm

2 min

By Imad Uddin

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Stock index futures rose 1.2 percent to 4,522, a 47.7-point premium to the underlying S&P/ASX 200 index. The benchmark rose 0.3 percent on Tuesday.

Bank shares are seen benefiting from overseas gains as markets have grown confident Greece will pass key austerity measures this week. Investors also liked a French plan to roll over Greek sovereign bonds.

Anti-austerity measures turned violent in Athens overnight but the EU sent a clear message to Greece that it faced immediate default unless the unpopular measures were backed.

The appointment of French Finance Minister Christine Lagarde to head the IMF could also soothe markets as it will help the international lender refocus attention on European debt issues.

Mining shares are also seen gaining as copper ended up over 1 percent on a rallying euro and global market optimism. Gold also posted gains. ADRs of heavyweight miner BHP Billiton were trading at a 2.2 percent premium compared to its last close in Sydney.

New Zealand's benchmark NZX 50 index rose 0.4 percent to 3,454.9 in early trade.

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