Outlook: Aus shares set to open flat

Market Reports

Despite positive leads from Wall Street overnight, the local share market looks set for a flat open this morning. US stocks gained some traction towards the close of trade, finishing the day 1.5 per cent higher. The rebound marks the end of the worst quarter for the US since 2011. 

US economic news
 
To US economic news, there was a surge of positive employment data with the private job sector read beating economists’ expectations, adding 200,000 new jobs in September. The read suggests the jobs growth may just be enough to warrant a rate hike by the Fed at the end of the year. 
 
Global markets

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1.5 per cent to close at 16,285, the S&P 500 gained 1.9 per cent to close at 1,920 and the NASDAQ was up by 2.3 per cent to close at 4,620.
 
European markets closed up: London’s FTSE gained 2.6 per cent, Paris was also up by 2.6 per cent and Frankfurt was up by 2.2 per cent.
 
Asian markets closed higher: Tokyo’s Nikkei added 2.7 per cent, Hong Kong’s Hang Seng gained 1.4 per cent, and China’s Shanghai Composite increased 0.5 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 103 points higher to finish at 5,022. On the futures market the SPI is up 1 point. 

Currencies

The Australian Dollar at 7:20AM was buying 70.18 US cents, 46.41 Pence Sterling, 84.14 Yen and 62.81 Euro cents.
 
Local economic news

Due out today is the AIG Performance of Manufacturing Index along with the CoreLogic/RP Data Home Value Index for September. Economists say the lower Australian dollar could have provided a welcome boost to the manufacturing sector. Also to be released is job vacancies for August, which will give an indication on whether Australia’s job market is strengthening or weakening. 
 
Company news

Sundance Resources Limited (ASX:SDL) has executed a term sheet for $7 million in new funding and has agreed to extend the maturity date of its convertible notes to September 2017 following negotiations with noteholders. The company says the extensions of the convertible notes will give the company sufficient headroom while it finances mining infrastructure. Shares in Sundance Resources are in a trading halt and last traded at 1.6 cents.
 
Ex-dividends

Three companies are going ex-dividend today: Austbrokers Holdings will pay a dividend of 27.7 cents fully franked, Clime Capital will pay a dividend of 1.2 cents fully franked and Joyce Corporation will pay a 3 cent dividend fully franked.  
 
Commodites

Gold has lost $12.30 to $US1,115 an ounce for the December contract on Comex.
Silver has lost 9 cents to $14.48 for December.
Copper has gained 9 cents to $2.34 a pound.
Oil has gained 13 cents to $45.36 a barrel for November light crude in New York.