Flat finish for Wall St: ASX set for mild gains on open

Market Reports

by Jessica Ellerm

Following soft leads, the Australian share market looks set to open slightly higher this morning. After a mostly flat finish on Wall Street, it was evident investors were waiting for Friday’s jobs report before reassessing their positions. Most economists are expecting good news on the jobs front, contributing to the broader picture of a strengthening U.S. economy.

US economic news

The number of Americans filing for unemployment benefits last week fell to the lowest number since mid-April of this year. The number came in at 249,000 and was a drop of 5000 compared to the previous week. Corporate layoffs however were a slightly different story, increasing 38 percent in September. Just over 44,000 job losses were recorded, driven mainly by the collapse of large education provider, ITT Technical Institute.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 18,269, the S&P 500 gained 0.1 per cent to close at 2,161 and the NASDAQ lost 0.2 per cent to close at 5,307.

European markets closed lower: London’s FTSE dropped 0.5 per cent, Paris fell 0.2 per cent and Frankfurt lost 0.2 per cent.

Asian markets closed up: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng lifted 0.7 per cent, and China’s Shanghai Composite was closed.

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 30 points up to finish at 5,483. On the futures market the SPI is 14 points up.

Currencies

The Australian Dollar at 7:20AM was buying $US75.86 cents, 60.18 Pence Sterling, 78.89 Yen and 68.06 Euro cents.

Economic news

Due out today from the Australian Industry Group is the Performance of Construction Index.

Company news

Austral Gold Limited (ASX:AGD) has announced it has appointed Dr Diego Guido as the new VP of Exploration. Dr Guido has an extensive academic and consulting background and held the position of Chief Technical Advisor to Argentex Mining in Argentina. Argentex was acquired by Austral in August of this year. Shares in Austral Gold Limited closed 5 per cent lower yesterday at $0.19.

Breaker Resources NL (ASX:BRB) has announced it will commence two new drilling programs at its Lake Roe Gold Project in WA. The announcement follows the completion of a successful $12.4 million capital raising, which saw just under 25 million new shares issued at an issue price of 50 cents. In addition to the two new drilling programs, proceeds raised will also be used to fund exploration at a maiden reserve north of the company’s Bombora prospect. Shares in Breaker Resources NL closed steady yesterday at $0.56.

Ex-dividends

3 companies are going ex-dividend today: Aberdeen Leaders (ASX:ALR) will pay 1 cent fully franked, AUB Group Limited (ASX:AUB) will pay 28 cents fully franked and TFS Corporation Limited (ASX:TFC) will pay 3 cents, also fully franked.

Commodities

Gold has fallen $13.00 to $US1,256 an ounce for the December contract on Comex.
Silver has dropped $0.38 to $17.32 for December.
Copper has slipped $0.01 to $2.16 a pound for December.
Oil has gained $0.73 to $US50.56 a barrel for November light crude in New York.
 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?