Australian traders get strong lead

Australian traders should be smiling, as the market opens today.

They have had a strong lead from Wall Street.

The Dow Jones industrial index rose sharply overnight, as financial shares – and  the US economy – both gathered strength.

The DJ index closed  212.67 points higher at 11,715.18.
This was the third consecutive day of rises on this key indicator.

The S&P 500 index also gained 19.02 points to close at 1,300.68.
And the tech heavy NASDAQ composite index put on  29.18 points to close at 2,411.64.
And oil prices eased, despite Tropical Storm Gustav.

Oil futures tumbled $US2.55 a barrel to $US115.60.
A short time ago, the $A was trading at 86.18 US cents.

New figures showed that the US economy grew faster than expected in the second quarter.

This was attributed to export gains.

But Louisiana is preparing for a hurricane, as Gustav approaches.