Halloween high: ASX to open in the black

Market Reports

by Jessica Ellerm

Following positive leads from US markets, the Australian share market looks set to open higher. Tech stocks drove the market forward on Halloween, while a strong earnings season to date continued to buoy the Dow and the S&P 500. The two indexes closed out October higher, both posting their seventh, consecutive monthly gain.

On the commodities front, oil has lifted nearly 30 US cents a barrel while and gold has dropped nearly half a percent.

US economic news

Manufacturing picked up in the Chicago region during October, with the Chicago PMI picking up a few points to come in at 66.2. It is the highest reading since March 2011. Adding to the positive sentiment was news from market research group Conference Board that consumer confidence rose to 125.9 in October, the highest reading since December 2000.

Economic news

Today AIG will release October’s Manufacturing Index and Corelogic will report on October house price data.

Markets

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.12 per cent to close at 23,377, the S&P 500 added 0.1 per cent to close at 2575 and the NASDAQ rose 0.4 per cent to close at 6,728.

European markets closed up: London’s FTSE lifted 0.1 per cent, Paris gained 0.2 per cent and Frankfurt was closed.

Asian markets closed mixed: Tokyo’s Nikkei closed flat, Hong Kong’s Hang Seng dropped 0.3 per cent, and China’s Shanghai Composite rose 0.1 per cent.

The Australian share market closed lower yesterday. The S&P/ASX 200 Index closed 10 points down to finish at 5,909. On the futures market the SPI is 24 points up.

Company news 

nib holdings limited (ASX:NHF) has announced it has completed the acquisition of corporate health insurer GU Health from Australian Unity. nib purchased the business for a total of $155.5 million, at a multiple of 15.0x FY18 estimated earnings. The acquisition is part of a broader strategy by nib to increase its presence in the corporate group market. Shares in nib holdings limited (ASX:nib) closed 0.16 per cent lower at $6.30.

Ex-dividends

2 companies are going ex-dividend today: Duxton Water Limited (ASX:D2O) will pay 2.3 cents 75 per cent franked and Freedom Food Limited (ASX:FNP) will pay 2.25 cents fully franked.

Currencies

The Australian Dollar at 7:40AM was buying $US76.54 cents, 57.64 Pence Sterling, 87.01 Yen and 65.73 Euro cents.

Commodities

Gold has lost $6.20 to $US1,272 an ounce.
Silver has lost $0.13 to $US16.71 an ounce.
Oil has gained $0.29 to $US54.44 a barrel.
 

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