Tech giants pull Nasdaq up 2.2%: Aus shares to open higher

Market Reports

by Kathy Skantzos

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

The Nasdaq jumped 2.2 per cent by 144 points in the biggest one-day gain in a year since November 2016, pulled up by tech giants. Amazon, Microsoft and Google’s parent company Alphabet all soared. Amazon stocks broke above $1100 for the first time after recording earnings that were better than market expectations. Microsoft also surprised the market with revenue topping $20 billion and Alphabet reported higher earnings per share and saw a larger than expected volume in Google ad clicks across the world.

On the commodities front, oil has jumped up more than 2 per cent approaching close to $54 a barrel, reaching a nearly 8-month high on Friday. Gold is sitting flat and iron ore has dropped more than 2 per cent.

Local economic news due out this week

On Tuesday the HIA will release new home sales for September. The Reserve Bank will also release private sector credit for September.

On Wednesday we can expect the manufacturing index and home prices for October.

On Thursday we will see the international import and export trade figures for September and building approvals data.

On Friday the ABS will release retail trade for September and new vehicle sales for October. The Performance of Services Index will also be released.

Figures

Wall Street closed higher on Friday: The Dow Jones Industrial Average gained 0.14 per cent to close at 23,434, the S&P 500 added 0.8 per cent to close at 2,581 and the NASDAQ saw a 2.2 per cent rise to close at 6,701.

European markets closed higher: London’s FTSE gained 0.3 per cent, Paris is up 0.7 per cent and Frankfurt increased 0.6 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 1.2 per cent, Hong Kong’s Hang Seng gained 0.8 per cent, and China’s Shanghai Composite is up 0.3 per cent.

And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 13 points down to finish at 5,903.

On the futures market the SPI is 34 points up.

Company news

National Australia Bank (NAB) (ASX:NAB) agreed to a $10 million fine and $20 million in costs in a settlement with the Australian Securities and Investment Commission (ASIC) regarding the bank bill swap rate legal action. NAB has admitted to its employees being involved in 12 cases during 2010 and 2011 where they were in breach of ASIC’s Act. The court action began following an industry-wide review by ASIC into participants in the bank bill swap rate market. The settlement is subject to further Federal court approval. Shares in NAB (ASX:NAB) last traded 0.7 per cent lower to $32.62.

Ex-dividends

2 companies are going ex-dividend today:

Aurora (ASX:AOD) is paying 0.33 cents fully franked and Joyce Corporation (ASX:JYC) is paying 6 cents fully franked.

Currencies

One Australian Dollar at 7:40AM was buying 76.76 US cents, 58.52 Pence Sterling, 87.30 Yen and 66.13 Euro cents.

Commodities

Gold has gained $2.20 to $US1,272 an ounce.
Silver has lost 6 cents to $US16.75 an ounce.
Oil has gained $1.26 to $US53.90 a barrel.
 

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