Following strong leads from Wall Street, the Australian share market looks set to open well into positive territory. US stocks rallied in afternoon trade after minutes from the Fed indicated there could very well be an interest rate hike next month.
To US economic news, the FOMC has released its board minutes for its last meeting with many of the central bank’s officials rallying behind a December rate hike. However, there are still concerns about the US economy and the Fed’s goal for 2 per cent inflation.
Global markets
To the figures: Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.4 per cent to close at 17,738, the S&P 500 added 1.6 per cent to close at 2,083 and the NASDAQ added 1.8 per cent to close at 5,075.
European markets closed mixed: London’s FTSE added 0.2 per cent, Paris lost 0.6 per cent and Frankfurt lost 0.1 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng lost 0.3 per cent, and China’s Shanghai Composite lost 1 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed up 15 points to finish at 5,133. On the futures market the SPI is up 58 points.
Currencies
The Australian Dollar at 9.00AM was buying 71.12 US cents, 46.71 Pence Sterling, 87.91 Yen and 66.74 Euro cents.
Company news Fonterra Co-operative Group Limited
(ASX:FSF) has announced it will sell a 50 per cent interest in DairiConcepts, the Co-operatives' US joint venture with Dairy Farmers of America. DFA will purchase Fonterra’s 50 per cent interest for about US$196 million.
Shares in Fonterra closed 1.78 per cent lower yesterday at $4.98.
Western Areas Limited
(ASX:WSA) has advised the temporary loss of power to the company’s Forrestania operations has now been restored. The loss of power arose from a regional bushfire, located approximately 35 kilometres to the north of the mine site.
Shares in Western Areas closed flat yesterday at $2.25.
Ex-dividends One company is going ex-dividend today, its Incitec Pivot
(ASX:IPL) which will pay a partly franked dividend of 7.4 cents.
Commodities
Gold has gained $1.40 to $US1,070 an ounce for the December contract on Comex.
Silver has lost 9 cents to $14.12 for December.
Copper has lost 3 cents to $2.08 a pound.
Oil has gained 27 cents to $US41.98 a barrel for December light crude in New York.
