The local share market will find it difficult to continue last week’s rally following a lacklustre lead from Wall Street ahead of the weekend.
US stocks had posted a positive weekly raise gaining over 3 per cent over the 5 days trading. However minutes released from the FOMC meeting are indicating that an interest rate rise by the Federal Reserve may not come before the end of the year.
The sentiment has sent the Aussie dollar rising strongly against the greenback.
US economic news
The Labor Department reported that US import prices fell just 0.1 per cent for September, well below and expected decline of 0.5 per cent.
Markets
Wall Street closed a little higher on Friday: The Dow Jones Industrial Average gained 0.2 per cent to close at 17,084, the S&P 500 was effectively flat at 2,015 and the NASDAQ added 0.4 per cent to close at 4,830
European markets closed higher: London’s FTSE gained 0.7 per cent, Paris added 0.5 per cent and Frankfurt advanced 1per cent.
Asian markets closed up: Tokyo’s Nikkei added 1.6 per cent, Hong Kong’s Hang Seng was 0.5 per cent higher, and China’s Shanghai Composite rose by 1.3 per cent.
The Australian share market closed stronger on Friday: The S&P/ASX 200 Index closed 69 points higher to finish at 5,280 to be 246 points up on the week. On the futures market the SPI is pointing 18 points lower.
Currencies
The Australian Dollar at 8:20AM was buying 73.24 US cents, 47.82 Pence Sterling, 88.02 Yen and 64.46 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is lending finance for August and from the Reserve Bank, credit and debit card lending.
Company news Australia and New Zealand Banking Group
(ASX:ANZ) is planning to lift its market share in the NSW home loans market after other banks outperformed ANZ in that area. The bank has been pushing hard into Asian markets of late but plans to return its focus closer to home. ANZ last traded 1.9 per cent stronger at $28.46.
Evolution Mining
(ASX:EVN) says the directors of takeover target Pheonix Gold
(ASX:PXG) continue to recommend shareholders reject Evolution’s takeover offer saying the offer does not reflect the value of Pheonix assets. Shares in Evolution Mining last traded 2.67 per cent higher at $1.345.
Ex-dividends Three companies are going ex-dividend today: Future Generation Investment Company
(ASX:FGX) will pay 2 cents fully franked, 360 Capital Industrial Fund
(ASX:TIX) will pay 5.4 cents with no franking and WAM Research Limited
(ASX:WAX) will pay 4 cents fully-franked.
Commodities
Gold has added $11.60 to $US1,156 an ounce for the December contract on Comex. Silver has added 5 cents to $15.82 for December. Copper is up by 7 cents to $2.41 a pound. Oil has risen by 14 cents to US$50.14 a barrel for November light crude in New York.
