Tech stocks fuel Wall St rally: Aus shares to erase losses, open up

Market Reports

by Jessica Amir

The Australian share market is set to erase some of yesterday’s losses following positive leads from US markets.

The Dow Jones closed at another record high and made gains for the fifth day with tech stocks leading the charge. The tech heavy Nasdaq itself also hit a fresh record. The S&P 500 was also bolstered, but for its sixth straight session with fuel coming from Airlines stocks.

On the commodities front, oil has taken a dip on the back of traders taking profits, while gold has hit a seven-week low.

Local economic news

Not much to report on today, however we should get a reading of how the services sector is tracking with a reading from AIG. We are expecting the sector to have expanded in September, to a reading of 53.2, up from the prior month.

Markets

Wall Street closed higher on Tuesday: The Dow Jones Industrial Average gained 0.4 per cent to close at 22,642, the S&P 500 added 0.2 per cent to close at 2,535 and the NASDAQ gained 0.3 per cent to close at 6,517.

European markets closed higher: London’s FTSE gained 0.4 per cent, Paris added 0.3 per cent and Frankfurt was not trading.

Asian markets closed higher: Tokyo’s Nikkei added 1.1 per cent, Hong Kong’s Hang Seng surged 2.3 per cent, and China’s Shanghai Composite is still not trading as it’s in a public holiday.

And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 28 points down to finish at 5,701.

On the futures market the SPI is 15 points up.

Company news

Cadence Capital (ASX:CDM), the fund manager has announced a capital raising via a share purchase plan (SPP) and placement. Cadence will offer eligible shareholders a fixed price of $1.26 or $1.259 per share (to be exact), which is a discount to its closing price of $1.32 on 29 September. New shares under the SPP are expected to be issued on 3 November 2017. Shares in Cadence Capital (ASX:CDM) closed 0.4 per cent lower at $1.32.

Linius Technologies (ASX:LNU), the video streaming company has partnered with Village Roadshow (ASX:VRL) the owner of Movie World and Roadshow films, to provide its anti-piracy video technology. The collaboration involves Linius’ anti-piracy solution being used across premium video content by Roadshow films. The company says it supports the commercialization of the $21 billion anti-piracy industry. Shares in Linius Technologies (ASX:LNU) closed 5.8 per cent lower at 4.9 cents.

To ex-dividends

4 companies are going ex-dividend today, they are

Aspen Group (ASX:APZ) which is paying 5 cents unfranked
Collection House (ASX:CLH) is paying 3.9 cents fully franked
Redhill Education (ASX:RDH) is paying 2 cents fully franked and
Watermark Fund (ASX:WMK) is paying 2.5 cents fully franked.

Currencies

One Australian Dollar at 7:40AM was buying 78.36 US cents, 59.20 Pence Sterling, 88.44 Yen and 66.71 Euro cents.

Commodities

Gold has lost $2.10 to $US1,274 an ounce.
Silver is flat at $US16.65 an ounce.
Oil has lost $0.22 to $US50.36 a barrel.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.