Following positive leads from Wall Street following the Fed’s decision to once again keep interest rates on hold, the Australian share market looks set to open well into positive territory this morning.
US economic news
We saw US stocks end sharply higher this morning after Federal Reserve Chairwoman Janet Yellen left the door open for a rate hike in December. The FOMC stated it anticipated inflation to remain near its recent low level in the near term, but will rise gradually toward 2 percent over the medium term as the jobs market improves. If the FOMC decides to lift rates in December, it will be the first time in a decade.
Global markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.1 per cent to close at 17,780, the S&P 500 added 1.2 per cent to close at 2,090 and the NASDAQ gained 1.3 per cent to close at 5,096.
European markets closed higher: London’s FTSE added 1.1 per cent, Paris gained 0.9 per cent and Frankfurt added 1.3 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng lost 0.8 per cent, and China’s Shanghai Composite lost 1.7 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 11 points lower to finish at 5,335. On the futures market the SPI is up 43 points.
Currencies
The Australian Dollar at 8:20AM was buying 71.08 US cents, 46.56 Pence Sterling, 86.05 Yen and 65.10 Euro cents.
Economic news
Due out today from the Housing Industry Association are new home sales figures for the month of September. This data will indicate the state of home building.
Company news ANZ Bank
(ASX:ANZ) has reported a 3 per cent jump in statutory net profit to $7.5 billion for FY 2015. The final dividend came in at 95 cents fully franked with the total dividend for the year up 2 per cent. The company says its pleased to see growth in its customer franchises in Australia, New Zealand and Asia despite macro-economic headwinds. Shares in ANZ closed 0.66 per cent lower yesterday at $28.75.
Fonterra Co-operative Group Limited
(ASX:FSF) has welcomed the formal approval by the board of Beingmate Baby and Child Food Company to establish a joint venture to purchase the Co-operatives Darnum plant in Australia. The company says China is a key strategic market for Fonterra and the global partnership with Beingmate provides significant growth potential for both companies. Shares in Fonterra closed 0.8 per cent lower yesterday at $5.05.
Ex-dividends Three companies are going ex-dividend today: Bank of Queensland
(ASX:BOQ) will pay a fully franked dividend of 38 cents, Freedom Foods Group
(ASX:FNP) will pay a fully franked dividend of 1.5 cents and Harvey Norman
(ASX:HVN) will pay a fully franked dividend of 11 cents.
Commodities
Gold has lost $10.10 to $US1,156 an ounce for the December contract on Comex.
Silver has gained 8 cents to $15.94 for December.
Copper has gained one cent to $2.37 a pound.
Oil has gained $2.98 to $US46.18 a barrel for December light crude in New York.
