After a positive day of trade on Wall Street, the Australian share market is set to open in the green with a promising futures index.
With the US markets set to be closed for Thanksgiving tomorrow and with only half a day of trade on Friday, investors have been in buying mode. The S&P 500 hit 2,600 points for the first time yesterday and the Dow and Nasdaq also hit record highs, with tech stocks rallying. Apple rose 1.9 per cent, the best performing stock on the Dow. Big tech companies Facebook, Amazon, Netflix and Alphabet all rallied, lifting the Nasdaq more than a per cent. Several large US companies recorded stronger than expected quarterly results, including Medtronic and Dollar Tree.
On the commodities front, oil is up, gold has gained again, and iron ore is also tracking higher.
US economic news
Same store sales increased to 4.1 per cent from 2.3 per cent annually. The monthly figure dropped 0.7 per cent from a previous 1.2 per cent drop.
The Chicago Fed National Activity Index increased to 0.65 in October from 0.36 in September, beating market expectations of 0.2. This is the highest reading since January 2012, driven by an increase in production.
Existing home sales jumped 2 per cent month on month in September, beating market expectations of 0.7 per cent.
The US Treasury 3-month bill yield was 1.27 per cent and 6-month bill increased to 1.44 per cent.
Local economic news
The lending index for October will be out, which increased 0.1 per cent in September after a 0.1 per cent decline the previous month.
Total construction work done in Australia for the September quarter will be out, which is expected to drop by about 2 per cent after last quarter saw a 9.3 per cent increase.
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.7 per cent to close at 23,591, the S&P 500 added 0.7 per cent to close at 2,599 and the NASDAQ closed 1.2 per cent higher to 6,862.
European markets closed up: London’s FTSE gained 0.3 per cent, Paris is up 0.5 per cent and Frankfurt increased 0.8 per cent.
Asian markets closed up: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng gained 1.9 per cent, and China’s Shanghai Composite increased 0.5 per cent.
And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 18 points up to finish at 5,964.
On the futures market the SPI is 16 points up.
Real estate portfolio manager Mirvac (ASX:MGR) has acquired a 6-floor twin tower in a commercial district of Sydney for $86.3 million. The commercial property is 100 per cent leased, with St George Bank the major tenant occupying 68 per cent. The building has a WALE of 3.13 years. Shares in Mirvac (ASX:MGR) closed 0.4 per cent lower to $2.42.
One company is going ex-dividend today. Absolute Equity (ASX:AEG) is paying 2.5 cents fully franked.
One Australian Dollar at 8:40AM was buying 75.79 US cents, 57.25 Pence Sterling, 85.23 Yen and 64.58 Euro cents.
Gold has gained $4.40 to $US1,280 an ounce.
Silver has gained $0.09 to $US17.04 an ounce.
Oil has gained $0.48 to $US56.90 a barrel.