Following positive leads, the Australian share market looks set to open higher. US stocks and treasuries lifted into the close as the US Federal Reserve voted unanimously to raise interest rates by 0.25 percent marking the first rate hike in 9 years. US Fed chair Janet Yellen said the central bank was confident inflation will rise 2 percent in the medium term.
Housing starts surged 10.5 percent in November following a slip in October. Meanwhile US industrial production fell 0.6 percent from a month earlier, marking its third straight month of declines.
Markets
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1.3 per cent to close at 17,749, the S&P 500 gained 1.5 per cent to close at 2,073 and the NASDAQ gained 1.5 per cent to close at 5,071.
European markets closed up: London’s FTSE gained 0.7 per cent, Paris gained 0.2 per cent and Frankfurt gained 0.2 per cent.
Asian markets closed up: Tokyo’s Nikkei added 2.6 per cent, Hong Kong’s Hang Seng gained 2 per cent, and China’s Shanghai Composite gained 0.2 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 119 points up to finish at 5,028. On the futures market the SPI is 54 points up.
Turning to currencies and the Australian Dollar at 8:20AM was buying $US0.7222 cents, 48.16 Pence Sterling, 88.29 Yen and 66.2 Euro cents.
Economic news
The Reserve Bank will release its quarterly bulletin this morning.
Company news
Iluka Resources Limited
(ASX:ILU) has cut its capital expenditure forecast by 35 percent to $75 million for the calendar year. The miner also noted it is expecting a slip in sales. The company forecasts sales of zircon, rutile and synthetic rutile to be 5 percent lower than previous guidance. Shares in Iluka Resources closed 3.88 per cent up yesterday at $5.35.
IMF Bentham Limited
(ASX:IMF) has announced the settlement of claims against liquidated company Gunns Limited. Pending court approval, IMF expects to generate revenue of approximately $4.9 million and a profit before tax of approximately $2.9 million. Shares in IMF Bentham closed 6.42 per cent lower yesterday at $1.24.
Commodities
Gold has gained $10.90 to $US1,073 an ounce for the February contract on Comex.
Silver has gained $0.41 to $14.18 for March.
Copper has gained $0.01 to $2.07 a pound.
Oil has lost $1.54 to $US36.97 a barrel for January light crude in New York.
