The local market looks set to open higher after US markets rallied well over 1 per cent Thursday. Financial stocks including Goldman Sachs and Boeing sent the Down Jones surging after a two day rout.
More soft economic data is supporting the case for a delay in an interest rate rise from the Federal Reserve.
US economic news
US consumer prices fell a seasonally adjusted 0.2 per cent in September, in line with expectations. Analysts say low oil prices are keeping inflation below the Fed’s target rate.
The US jobs market is looking better however with weekly jobs claims falling by 7,000 to 255,000, the lowest level in 42 years and coming in well below expectations of claims of 270,000.
Markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.3 per cent to close at 17,142, the S&P 500 advanced 1.5 per cent to close at 2,024 and the NASDAQ added 1.8 per cent to close at 4,870.
European markets closed up: London’s FTSE rose 1.1 per cent, Paris added 1.4 per cent and Frankfurt gained 1.5 per cent.
Asian markets also closed higher: Tokyo’s Nikkei added 1.2 per cent, Hong Kong’s Hang Seng advanced 2 per cent, and China’s Shanghai Composite rose by 2.3 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 33 points up to finish at 5,230. On the futures market the SPI is 40 points up.
Currencies
The Australian Dollar at 8:20AM was buying 73.28 US cents, 47.36 Pence Sterling, 87.15 Yen and 64.30 Euro cents.
Economic news
Due out today from the Reserve Bank is the twice-yearly financial stability review with comments around the housing market eagerly anticipated.
Company news
Oceana Gold Corporaion
(ASX:OGC) says it has received approval from New Zealand’s Overseas Investment Office for the acquisition of Waihi Operation from Newmont Mining. Financial close is expected by the end of the month. Shares in OceanaGold last traded 1.92 per cent higher at $2.66.
And CTI Logistics Limited
(ASX:CLX) has sold its site at Bibra Lake in Perth to Investec Australia Property Fund for $26 million. CTI has leased back the property for a 12 year period and will use the funds to pay down debt. Shares in CTI are in a trading halt and last traded at $1.19.
Ex-dividends Two companies are going ex-dividend today. New Hope Corporations
(ASX:NHC) will pay 6 cents fully-franked and Skydive the Beach ASX:SKB) will pay 1 cent fully-franked.
Commodities
Gold has added $7.70 to US$1,183 an ounce for the December contract on Comex. Silver has risen 5 cents to $16.12 for December. Copper is up 1 cent to $2.43 a pound. Oil has lifted 25 cents to US$47.41 a barrel for November light crude in New York.
