After a positive day of trade on Wall Street, the Australian share market is set to open higher today as the futures bounce back following yesterday’s slow performance.
The major indices finished in positive territory in the US after a weaker start yesterday, with the Dow finishing 72 points higher by the end of trade. Telcos performed well and General Motors also had a positive influence on bringing the market up. The markets are being affected by the anticipated tax reform details, which investors expect will lower corporate taxes. The US dollar has regained strength, nearing a one-week high.
Oil is tracking lower and gold and silver have taken a fall. Iron ore is tracking more than a per cent higher, which should have a positive impact on the mining sector today.
Local economic news
Australia’s consumer confidence index will be out today. Last week’s figure increased 2 per cent due to a lift in economic conditions, which was the highest level in 7 weeks.
The Reserve Bank board meeting minutes will come out today, followed by a speech by the Reserve Bank Governor.
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.3 per cent to close at 23,430, the S&P 500 added 0.1 per cent to close at 2,582 and the NASDAQ lifted 0.1 per cent to close at 6,791.
European markets closed up: London’s FTSE gained 0.1 per cent, Paris increased 0.4 per cent and Frankfurt is 0.5 per cent higher.
Asian markets closed mixed: Tokyo’s Nikkei lost 0.6 per cent, Hong Kong’s Hang Seng gained 0.2 per cent, and China’s Shanghai Composite gained 0.3 per cent.
And back home, the Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 12 points down to finish at 5,946.
On the futures market the SPI is 21 points up.
Fisher & Paykel Healthcare (ASX:FPH) recorded a 4 per cent increase in net profit after tax of NZ$81 million in the first half of the year to September. Operating revenue has increased 8 per cent from the same time last year to NZ$458 million. The company said the results are in line with its expectations, reflecting momentum across both its hospital and homecare product groups. Shares in Fisher & Paykel Healthcare (ASX:FPH) closed 1.4 per cent higher to $12.37.
Air New Zealand (ASX:AIZ) has recorded a 7.6 per cent increase in passengers in October this year compared to the same time last year, with passenger revenue up 5.7 per cent. Travellers on short haul flights increased by 8.6 per cent and long haul passengers increased by 4.4 per cent. Customers travelling to Asia increased 6 per cent and 3.2 per cent to the UK and Americas. Shares in Air New Zealand (ASX:AIZ) closed 1.2 per cent higher to $2.87.
One Australian Dollar at 8:30AM was buying 75.49 US cents, 57.05 Pence Sterling, 85.03 Yen and 64.34 Euro cents.
Gold has lost $19.70 to $US1,277 an ounce.
Silver has lost $0.48 to $US16.89 an ounce.
Oil has lost $0.32 to $US56.39 a barrel.