The Australian share market is tipped to edge higher this morning, after US stocks closed mostly in the black after the Federal Reserve kept rates on hold.
The Fed Reserve’s Open Market Committee (FOMC) reported consumer and business sentiment both improved, So, as expected it kept its overnight benchmark lending rate target between 0.5% to 0.75%
Apple shares surged 6% and contributed to the Dow Jones Industrial Average gaining 100 points in the session, before the index closed 25 points up. The S&P 500 was weighed down by utilities which fell 1.7%, while healthcare and materials outperformed.
US economic newsUS private sector employers added 246,000 jobs in January, according to the ADP National National Employment report. It was a positive surprise for economists who only expected 165,000 new jobs for the month.
The Institute of Supply Management (ISM) reported a 1.5% rise in manufacturing for January, compared to December, with the ISM Manufacturing index rising to 56, versus, estimates of 55. It marks the 92nd consecutive month of economic growth in the US.
Local economic news due out todayWe can expect the ABS to report on International Trade and Building Approvals for November.
MarketsWall Street closed higher: The Dow Jones Industrial Average gained 0.14 per cent to close at 19,891, the S&P 500 added 0.03 per cent to close at 2,280 and the NASDAQ rose 0.5 per cent to close at 5,643.
European markets also closed higher: London’s FTSE gained 0.12 per cent, Paris added 0.96 per cent and Frankfurt lifted 1.08 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.56 per cent, Hong Kong’s Hang Seng fell 0.18 per cent, and China’s Shanghai Composite jumped 0.31 per cent.
Back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 32 points higher to finish at 5,653. On the futures market the SPI is 9 points higher.
Company newsBoutique investment manager, 8IP Emerging Companies Limited
(ASX:8EC), has announced it achieved a gross portfolio return of 0.8% for January 2017, before fees, expenses and tax. The Sydney based fund manager says its estimated portfolio return should only be considered as a guide, to its actual performance. 8IP Emerging Companies says, fees, expenses or tax adjustments will be made to the net tangible asset (NTA) calculation, and therefore the NTA over the same period will change. Shares in 8IP Emerging Companies Limited
(ASX:8EC) closed 1% lower to 99 cents.
Reporting season We can expect Downer EDI
(ASX:DOW) and TABCorp Holdings
(ASX:TAH) to report their first half 2017 financial year results today.
Currencies The Australian Dollar at 8.30AM was buying $US0.7585 , 59.92 Pence Sterling, 85.84 Yen and 70.44 Euro cents.
Commodities Gold has slipped 40 cents to $US1,211 an ounce.
Silver is flat at $17.54.
Oil has gained 62 cents to $US53.43 a barrel.
