Minutes from the Federal Reserve’s most recent policy meeting sent US stocks higher in late trade on Thursday. The minutes revealed the US central bank is looking for a looking for more positive signs the economy is in recovery before it will raise rates indicating it is uneasy with the low inflation of the past three years.
The advances on Wall Street are pointing to a positive open for the local market hoping to make it five straight days of gains.
US Economic news
The Labor Department reported that jobless claims fell by 13,000 in the week ending October 3 to 263,000 or the lowest level since mid-July.
Markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.8 per cent to close at 17,051, the S&P 500 added 0.9 per cent to close at 2,013 and the NASDAQ rose 0.4 per cent to close at 4,811.
European markets closed up: London’s FTSE gained 0.6 per cent, Paris added 0.2 per cent and Frankfurt also advanced 0.2 per cent.
Asian markets closed mixed: Tokyo’s Nikkei shed 1 per cent, Hong Kong’s Hang Seng lost 0.7 per cent, and China’s Shanghai Composite gained 3 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 13 points up to finish at 5,210. On the futures market the SPI is pointing 62 points higher.
Currencies
The Australian Dollar at 8.30AM was buying 72.55 US cents, 47.28 Pence Sterling, 86.98 Yen and 64.33 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is housing finance for August and NAB business confidence for September.
Company news Air New Zealand Limited
(ASX:AIZ) has welcomed a move by United Airlines to enter the New Zealand market with a San Francisco–Auckland service. The US carrier will operate a tri-weekly service starting in July next year before moving to daily services in November. Air New Zealand last traded up 2.55 per cent at $2.41.
The A2 Milk Company Limited
(ASX:A2M) has announced the successful completion of a NZ$40 million share placement which was heavily oversubscribed. The funds will be used to strengthen the company balance sheet and opportunities around growth for the company. Shares in A2 Milk Company last traded at $0.65 ahead of a trading halt.
Ex-dividends Three companies are going ex-dividend today :Australian Leaders Fund
(ASX:ALF) will pay 5 cents fully-franked, Coventry Group Limited
(ASX:CYG) will pay 2.5 cents fully franked and TPG Telecom Limited
(ASX:TPG) will pay 6 cents also fully-franked.
Commodities
Gold has slipped $4.40 to US$1,144 an ounce for the December contract on Comex. Silver shed 43 cents to $15.66 for December. Copper is down 2 cents to $2.34 a pound. Oil is up $1.62 to US$49.43 a barrel for November light crude in New York.
