Tech stocks push Wall St higher: ASX to rise at open

Market Reports

by Jessica Amir

The Australian share market is set for a good start to the Friday session, after Wall Street closed higher, with US tech stocks inking their third days of gains.

Despite the three-day Tech run, tech stocks have come under pressure of late, but they gained back some ground this week, and still remain the best-performing sector of the year.

The tech heavy Nasdaq itself gained 0.5 per cent with Amazon and Facebook leading the rise, while the Dow finished about 70 points higher, after rising more than 100 points in the session. The broader S&P500 also advanced.

The Australian dollar has further dropped while the oil price has slightly recovered, while the iron ore price remains under pressure. Despite that, we should extend our lift from yesterday's gains and be back in record territory. 

US economic news

Household borrowing rose at a 3.7 per cent annual rate in the quarter from July to September, according to the Federal Reserve. It was just a touch down from the second quarter’s 3.8 per cent growth. Meantime, Consumer credit increased 4.9 per cent, up surpassing the 4.7 per cent growth in the second quarter.

Local economic news

We are expecting a reading of home loan and investment loans for the month of October, from the Mortgage Bankers Association. Economists are expecting the figures will have dropped from the prior month.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.3per cent to close at 24,211, the S&P 500 added 0.3 per cent to close at 2,637 and the NASDAQ rose 0.5 per cent to close at 6,813.

European markets closed mixed: London’s FTSE lost 0.4 per cent, Paris gained 0.2 per cent and Frankfurt rose 0.4 per cent.

Asian markets closed mixed: Tokyo’s Nikkei added 1.45 per cent, Hong Kong’s Hang Seng rose 0.3 per cent, and China’s Shanghai Composite shed 0.7 per cent.

And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 32 points up or 0.54 per cent hgiher to finish at 5,978.

On the futures market the SPI is 23 points up, pointing to a rise above 6,000. 

Company news

New Zealand newspaper, radio, outdoor advertising and digital media business NZME (ASX:NZM) confirmed Peter Cullinane as its Chairman. He has been on the board since June 2016 with a background in global advertising and marketing in the listed media sector and related industries. He has been a director of SKYCITY Entertainment (ASX:SKC) and HT&E (ASX: HT1). NZME (ASX:NZM) shares closed 1.23 per cent lower yesterday to $0.80.

Metal recycler, Sims Metal Management (ASX:SGM) has announced its new Chief Financial Officer will be Stephen Mikkelse. From 1 February 2018 he will take the hot seat. He has worked across the energy industry, holding senior roles at AGL (ASX:AGL) and Snowy Hydro. Sims also appointed Michael Movsas as President, North America Metals, a newly created position responsible for Sim’s North American operations. Shares in Sims Metal Management (ASX:SGM) closed 2.7 per cent higher yesterday at $14.93.

Currencies

One Australian Dollar at 8.30AM was buying 75.09 US cents, 55.79 Pence Sterling, 84.93 Yen and 63.80 Euro cents.

Commodities

Gold has shed $16.90 to $US1,249 an ounce.
Silver has lost $0.21 to $US15.75 an ounce.
Oil has gained $0.66 to $US56.62 a barrel.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.