Dow continues record run: Aus shares to open up

Market Reports

by Kathy Skantzos

Following strong leads from US markets, the Australian share market looks set to open higher today.

US stocks closed at record highs. Goldman Sachs continues to lift the Dow Jones which bumped up an impressive 153 points. The Nasdaq climbed 21 points at close and the S&P 500 also gained, pulled along by healthcare and financials.

The greenback is on track for the largest weekly rise this year.

On the commodities front, crude oil has dropped 2.2 per cent and gold is at a 0.8 per cent loss.

US economic news

Manufacturing increased to 53.1 points in September from 52.8 in August, as expected. Production rose modestly and job creation reached a 9-month high, while new orders slowed.

Local economic news 

The Housing Industry Association will release new homes sales figures for August, ANZ will release September’s job advertisements numbers, and the ABS will have building permits data for August. The Reserve Bank is expected to make a decision on interest rates today.

Figures

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.7 per cent to close at 22,558, the S&P 500 added 0.4 per cent to close at 2,529 and the NASDAQ is up 0.3 per cent to close at 6,517.

European markets closed higher: London’s FTSE gained 0.9 per cent, Paris is up 0.4 per cent and Frankfurt is 0.6 per cent higher.

Asian markets closed up: Tokyo’s Nikkei added 0.2 per cent. Hong Kong’s Hang Seng China’s Shanghai Composite are closed.

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 48 points up to finish at 5,729.

On the futures market the SPI is 19 points up.

Company news

Coal of Africa (ASX:CZA) has announced the sale of the Mooiplaats colliery with its subsidiary GVM Metals. Ferret Mining & Environmental Services entered into a sale of shares and claims agreement with Mooiplaats Coal and Mooiplaats Mining. Coal of Africa and Ferret will dispose of 100 per cent of their shares in Mooiplaats. The sale to Mooiplaats Coal will be for the purchase price of 179.9 million rand. The coal company embarked on a sale of the colliery since 2013. Coal of Africa (ASX:CZA) last traded flat at almost 4 cents a share.

Ex-dividends

5 companies are going ex-dividend today.

MYOB Group (ASXMYO) is paying 5.75 cents unfranked and Nick Scali (ASX:NCK) is paying 20 cents fully franked.

Currencies

One Australian Dollar at 7:50AM was buying 78.26 US cents, 58.96 Pence Sterling, 88.22 Yen and 66.72 Euro cents.

Commodities

Gold has lost $11.20 to $US1,274 an ounce.
Silver has lost $0.07 cents to $US16.61 an ounce.
Oil has lost $1.12 to $US50.55 a barrel.
 

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