Despite US stocks taking a downward turn at the close of trade, the Australian share market looks set to open in positive territory this morning, but only just. Stocks on Wall Street reversed their early gains after Federal Reserve chair Janet Yellen stated that an interest rate hike in December was looking like a “live possibility”.
US economic news
The ADP National Employment Report showed private payrolls increased 182,000 in October, on top of the 190,000 jobs added in September. These figures perhaps indicating the US economy is strong enough to withstand an interest rate hike by the Fed next month.
Global markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.3 per cent to close at 17,868, the S&P 500 slipped 0.4 per cent to close at 2,102 and the NASDAQ lost 0.05 per cent to close at 5,142.
European markets closed mixed: London’s FTSE gained 0.5 per cent, Paris added 0.3 per cent and Frankfurt lost 0.97 per cent.
Asian markets closed higher: Tokyo’s Nikkei added 1.3 per cent, Hong Kong’s Hang Seng gained 2.2 per cent, and China’s Shanghai Composite added 4.3 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 3 points higher to finish at 5,242. On the futures market the SPI is up 5 points.
Currencies
The Australian Dollar at 8:20AM was buying 71.54 US cents, 46.58 Pence Sterling, 86.96 Yen and 65.88 Euro cents.
Economic news
Reserve Bank of Australia Governor Glenn Stevens will deliver an address to the Melbourne Institute 2015 Economic and Social Outlook conference in Melbourne. At about lunchtime, Deputy Governor Philip Lowe will partake in FINSIA’s Regulators Panel Discussion in Sydney.
Company news
Xero Limited
(ASX:XRO) has reported its interim financial results for the half year ended 30 September 2015. The company says that annualized committed monthly revenue of $218.2 million was a 65 per cent increase from the same period last year. Subscription revenues also increased 72 per cent to $89.8 million for H1 of FY 2015. Shares in Xero closed 4.2 per cent higher yesterday at $16.57.
Ex-dividends Two companies are going ex-dividend today: Kathmandu Holdings
(ASX:KMD) will pay a dividend of 4.5 cents partly franked, and National Australia Bank
(ASX:NAB) will pay a fully franked dividend of 99 cents.
Commodities
Gold has lost $6.70 to $US1,107 an ounce for the December contract on Comex. Silver has dropped 18 cents to $15.05 for December. Copper has dropped one cent to $2.32 a pound. Oil has dropped $1.37 to $US46.53 a barrel for December light crude in New York.
