Following positive leads from US markets which jumped despite weaker-than-expected US jobs data, the Australian share market opened strongly and is maintaining those gains to be 1.85 per cent up at noon.
Stronger commodity prices are fuelling a materials-led rally with BHP surging as much as 3.5 per cent in morning trade. Meanwhile the surging gold price has lit a fire under the gold miners with Newcrest adding 10 per cent in early trade.
The S&P/ASX 200 index is 93 points up at 5,145. On the futures market the SPI is 99 points higher.
Economic news
The TD/Melbourne Institute inflation gauge has shown consumer prices rose 0.3 per cent in September, up from a 0.1 per cent rise in August. Annually prices are up 1.9 per cent, the highest since November last year but still below the RBA target rate of 2-3 per cent.
Company news
Ashley Services Group Limited
(ASX:ASH) has announced a strategic review following a ten per cent down turn in previous guidance and difficult trading during the September quarter. The company has replaced three board directors and also says CFO Paul Brittain has resigned effective April 2016. Shares in Ashley Services Group have reacted sharply and are trading down 34.43 per cent at $0.40.
And Avita Medical Limited
(ASX:AVH) says the US Food and Drug Administration has doubled the number of patients that can access Avita’s Recell TM skin grafting treatment. This takes the number of patients in the Compassionate Use Investigational Device Exemption program to 24. The pre-trial treatment allows clinicians to rapidly regenerate skin in burns victims using their own cells. Shares in Avita are trading up 4.76 per cent at $0.09.
Best and worst performers
All sectors were up in morning trade. The best performing sector is materials, gaining 3.45 per cent to 7,964. Shares in Newcrest Mining have risen 10.43 per cent and trading at $13.97. Shares in Evolution Mining and Northern Star Resources are also stronger.
The sector with the least gains is telco services, falling 1.23 per cent to 2,042 Shares in M2 Group have lifted 0.53 per cent, trading at $9.53. Shares in Vocus Communications and Telstra are also lower.
Gold and the dollar
Gold is trading at $US1,138 an ounce.
The Australian dollar is buying 70.47 US cents.
