Positive jobs data drives optimism: Aus shares set to open higher

Market Reports

by Jessica Ellerm

Following positive leads from US markets, the Australian share market looks set to open higher this morning. The Dow edged closer to 20,000 on Friday while tech stocks on the Nasdaq also drove the market to a strong finish. However with Trump’s inauguration looming, investors will be watching the markets closely this week to see if continued optimism will remain.

US economic news

Data released on Friday showed the trade gap widened by $2.9B in November to $45.2B. It was the biggest trade deficit since February. On the jobs front fresh data continued to support growing momentum in the US economy. Non-farm payrolls increased by 156,000 in December while the US unemployment rate held relatively steady at 4.7%, slightly up from November’s nine-year low of 4.6 percent.

Markets

Wall Street closed up on Friday: The Dow Jones Industrial Average gained 0.32 per cent to close at 19,964, the S&P 500 added 0.35 per cent to close at 2,277 and the NASDAQ rose 0.6 per cent to close at 5,521.

European markets closed up: London’s FTSE added 0.2 per cent, Paris lifted 0.19 per cent and Frankfurt gained 0.12 per cent.

Asian markets closed mixed: Tokyo’s Nikkei dropped 0.34 per cent, Hong Kong’s Hang Seng rose 0.21 per cent, and China’s Shanghai Composite fell 0.35 per cent.

The Australian share market closed higher on Friday: The S&P/ASX 200 Index closed 2 points up to finish at 5,756. On the futures market the SPI is 9 points up.

Currencies

The Australian Dollar at 7:45AM was buying $US72.95 cents, 59.62 Pence Sterling, 85.38 Yen and 69.29 Euro cents.

In local economic news: Due out today from the AIG is December’s Construction Index. The ABS will release building permit numbers for November and ANZ will publish Job ads for December.

Company news

CBL Corporation Limited (ASX:CBL) has announced it has completed its 71 percent acquisition of Securities and Financial Solutions Europe. The company is France’s largest specialist producer of construction-sector insurance. CBL has acquired the stake in the business for €94.5 million. Shares in CBL Corporation Limited closed 4.03% higher on Friday at $3.61.

Ex-dividends

1 company is going ex-dividend today: HGL Limited (ASX:HNG) will pay 1.5 cents fully franked.

Commodities

Gold has lost $7.60 to $US1,173 an ounce for the February contract on Comex.
Silver has dropped $0.12 to $16.52 for March.
Copper has gained $0.01 to $2.54 a pound for March.
Oil has lost $0.06 to $US53.70 a barrel for February light crude in New York.
  

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