Outlook: Wall St surges and ASX set to follow

Market Reports

We started the week with Black Monday’s crashing markets but today is looking decidedly more rosy as US markets pushed higher on the back of a very strong second quarter GDP figure.
 
The US economy expanded by an impressive 3.7 per cent in Q2, well ahead of the expected 2.3 per cent and destroying the weak Q1 figure of 0.6 per cent.
 
The oil price also surged overnight, up 10 per cent, which should offer Aussie energy stocks some welcome support.
 
And we’re in the final days of results season with stragglers including Woolworths and Harvey Norman expected to report today.
 
Global figures

Wall Street closed up yesterday. The Dow Jones Industrial Average gained 2.3 per cent to close at 16,655, the S&P 500 added 2.4 per cent to close at 1,988 and the NASDAQ gained 2.5 per cent to close at 4,813.
 
European markets closed up: London’s FTSE pushed 3.6 per cent higher, Paris is up  3.5 per cent and Frankfurt gained 3.2 per cent.
 
Asian markets closed up: Tokyo’s Nikkei gained 1.1 per cent, Hong Kong’s Hang Seng is up 3.6 per cent, and China’s Shanghai Composite jumped 5.3 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 61 points up to finish at 5,233. On the futures market the SPI is 90 points up. 
 
Turning to currencies and the Australian Dollar at 7:30AM was buying $US0.7169 cents, 46.53 Pence Sterling, 86.83 Yen and 63.78 Euro cents.
 
Company news
 
Watpac Limited (ASX:WTP) saw its shares finish higher yesterday on its being awarded an $80 million contract with Hanking Gold to deliver mining services at its new Axehandle Gold mine. The construction company says it will be responsible for the removal and stockpiling of topsoil, bulk excavation of overburden and ore. Shares in Watpac closed 4.71 per cent up yesterday at $0.89
 
Carsales.Com Limited (ASX:CAR) Chairman Wal Pisciotta has stepped down with Jeffrey Browne to take up the role. The company says Mr Brown has ample automotive experience including his current role as Chairman of Holden Special Vehicles. Mr Pisciotta will remain on the as a non-executive director. Shares in Carsales closed 1.96 per cent up yesterday at $9.90
 
Commodities

Gold has gained $0.40 to $US1,125 an ounce for the December contract on Comex. Silver is up $0.40 to $14.48 for September. Copper has gained $0.10 to $2.33 a pound. Oil has leaped $4.18 ahead to $US42.78 a barrel for October light crude in New York.

Ex-dividends
 
Aurora Div Income (ASX:AOD) paying 0.43 unfranked
Aurizon Holdings Ltd (ASX:AZJ) paying 13.9c 30 per cent franked
Bellamy'S Australia (ASX:BAL) paying 2.865c fully franked
Dicker Data Limited (ASX:DDR) paying 4c fully franked
Globe International (ASX:GLB) paying 4c fully franked
Ingenia Group (ASX:INA) paying 0.7c unfranked
Navitas Limited (ASX:NVT) paying 10.1c fully franked
Super Ret Rep Ltd (ASX:SUL) paying 21.5c fully franked
Vision Eye Institute (ASX:VEI) paying 2.5c fully franked

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.