Glimmer of hope for US economy

The local sharemarket is expected to continue its climb today after positive news from the US eased fears of a recession there. Labour market figures showed lower than expected job losses in the US, which with higher prices for gold and oil drove a gain on the Dow Jones index on Friday. CommSec chief economist Craig James has tipped a rise of between 40 and 50 points today. "Everything has fallen into place for the Australian sharemarket," he said. "Valuation on our market remains cheap." Mr James went on to point out that the current price to earnings ratio of 12.2 is still around the lowest it's been in 14 years and greater certainty that interest rates are at or near their peak will encourage investors back into the market.

Source: The Daily Telegraph