Following positive leads, the Australian share market looks set to open higher on this Thursday. The rebound in oil prices was dented as US data showed a larger-than-expected increase in crude oil stockpiles. Wall Street was able to hold onto morning gains however, surging into the close.
Meanwhile rising commodity prices have also supported the Australian Dollar rally. The local currency has been on the ascent since Tuesday’s Reserve Bank meeting, surging past US$0.72.
US economic news
Consumer credit in the US increased by US$16 billion in August. Data released by the Federal Reserve came in lower than the US$20.5 billion forecast.
Markets
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.7 per cent to close at 16,912, the S&P 500 added 0.8 per cent to close at 1,996 and the NASDAQ gained 0.9 per cent to close at 4,791.
European markets closed up: London’s FTSE gained 0.2 per cent, Paris gained 0.1 per cent and Frankfurt gained 0.7 per cent.
Asian markets closed mostly higher: Tokyo’s Nikkei added 0.8 per cent, Hong Kong’s Hang Seng gained 3.1 per cent, and China’s Shanghai Composite was closed.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 30 points up to finish at 5,198. On the futures market the SPI is 32 points up.
Currencies
Turning to currencies and the Australian Dollar at 8:20AM was buying $US0.7204cents, 47.05 Pence Sterling, 86.46 Yen and 64.12 Euro cents.
Company news
Aurizon Holdings Limited
(ASX:AZJ) is set to cut more than 800 jobs as part of a cost cutting program. The rail freight company announced it aims to deliver further cost reductions and productivity benefits totalling $310-380 million. Managing Director and CEO Lance Hockridge acknowledged subdued commodity prices have impacted Aurizon’s revenue growth outlook. Shares in Aurizon Holdings closed 0.39 per cent lower yesterday at $5.13.
Origin Energy Limited
(ASX:ORG) has withdrawn resolutions relating to executive incentives ahead of its AGM taking place on 21 October. The resolutions would have granted chief executive Grant King and finance chief Karen Moses $4.7 million in equity incentives. Origin has also announced a successful flow test at a gas well at the company’s Perth Basin project in coordination with AWE. Shares in Origin Energy closed 25.41 per cent up yesterday at $6.10.
Ex-dividends
| Name | Code | Date | Amount(cents) | Franking |
| Aberdeen Leaders | ALR | 8/10/15 | 1.0 | 100 |
| Eumundi Group Ltd | EBG | 8/10/15 | 0.3 | 100 |
| TFS Corporation Ltd | TFC | 8/10/15 | 3.0 | 100 |
Commodities
Gold has lost $1.40 to $US1,145 an ounce for the December contract on Comex.
Silver has gained $0.07 to $16.05 for December.
Copper has gained $0.01 to $2.37 a pound.
Oil has lost $0.40 to $US48.13 a barrel for November light crude in New York.
