The Australian stock market looks like it might skyrocket this morning, following surprisingly positive leads. Donald Trump has, against all odds, beaten Hillary Clinton in the US election – despite the fact she was tipped as the favourite to win, according to most polls.
Yesterday, was a very volatile, up-and-down day for global markets. After Trump’s unexpected victory, Dow futures plunged by over 800 points, and there were fears that market turmoil would follow – similar to what happened after the UK had its Brexit vote back in June, this year.
However, the US share market actually lifted overnight, as investors seem to be glad that the long-drawn out Election is finally over. In fact, the VIX Volatility Index (CBOE), which measures fear in the US market, traded 17% lower to around 15.5 points.
On Wall Street, shares in banks, healthcare, infrastructure and energy surged. And it appears US investors are feeling positive about Mr Trump‘s proposed corporate tax cuts, and the prospect of him introducing fiscal stimulus measures – such as investment in roads, rail, ports and defence, which could provide a much-needed lift to the US economy and inflation.
MarketsWall Street finished higher overnight: The Dow Jones gained 1.4 per cent to close at 18,590, the S&P 500 is up 1.1 per cent at 2,163 and the NASDAQ is up 1.1 per cent at 5,251.
European markets finished higher: London’s FTSE was up 1%, Paris gained 1.5%, and Frankfurt lifted 1.6%.
An exception to this positive sentiment was Asian markets: the Nikkei was down 5.4%, the Hang Seng lost 2.2%, and the Shanghai Composite slipped 0.6%.
The Australian share market closed lower yesterday: The ASX 200 closed 101 points lower to finish at 5,157. However, this morning, on the futures market the SPI has gained a massive triple-digit 154 points.
CurrenciesThe Australian Dollar after 8:00AM was buying $US76.54, 61.64 Pence, 81.02 Yen and 70.15 Euro cents.
To company newsDexus Property Group
(ASX:DXS) has exchanged contracts to acquire a property called ‘The Mill’ for $110.2 million. The Mill is a 1.9 hectare mixed used property which is located at Bourke Street, Alexandria in NSW. Some if its tenants include BluScope Steel, Genesis HealthCare, and the very popular café, known as the Grounds of Alexandria (which attracts up to 20,000 visitors each week). Dexus expects this transaction to settle in January 2017. Shares in Dexus closed 0.67% lower at $8.96.
Ardent Leisure’s
(ASX:AAD) Dreamworld theme park will remain closed indefinitely – and won’t re-open until every ride has undergone a safety check, according to Craig Davidson (who is the chief executive of Dreamworld). The Gold Coast theme park was been closed since last month, when four people were killed on the Thunder River Rapids ride. Ardent Leisure has confirmed that the fatal ride will be closed permanently – out of respect for the victims. Shares in Ardent Leisure closed 1.99% lower at $1.97.
Ex-dividendsOrica, one of the largest providers of commercial explosives to the mining sector, will pay a dividend of 29 cents per share, 28% franked.
CommoditiesGold has gained $2.20 to $US1,277 an ounce.
Silver is up $0.07 to $18.43.
Copper is up 8 cents at $2.46 a pound.
Oil has gained $0.38 to $45.26 per barrel.
