The Australian market looks set to open higher after global markets extended their rally overnight, aided by a central bank agreement to ensure US dollar liquidity to Europe's struggling banks.
US economic news
The Consumer Price Index rose 0.4 per cent in August, that’s a rise of 3.8% in the month compared to a year earlier.
Jobless claims also increased by 11,000 to 428,000 last week.
The figures
On Thursday, the Dow Jones Industrial Average rose 186 points to close at 11,433, the S&P500 gained 20 points to close at 1,209 and the NASDAQ rose 35 points to close at 2,607.
European stocks closed higher: London’s FTSE was up 111 points, Paris gained 96 and Frankfurt rose 168.
To Asian markets, and stocks were mixed: Hong Kong’s Hang Seng rose 136, Tokyo’s Nikkei gained 150 points and China’s Shanghai Composite was down 6 points.
Yesterday, The S&P/ASX 200 Index closed 66 points higher at 4,072. On the futures market the SPI is currently 46 points stronger.
Currencies
The Australian Dollar at 7:40AM was buying $US1.0339, 65.44 Pence Sterling, 79.33 Yen and 74.47 Euro cents.
Company news
Yesterday shares in Singapore Telecommunications Limited (ASX:SGT) closed 1.26 per cent higher at $2.41. Optus is getting ready to launch its faster mobile broadband in April, with plans to build up to 500 new base stations. 4-G services will be available in central NSW early next year, and then Melbourne, Perth and Sydney by the middle of the year, followed by Adelaide and Brisbane. In the 2010 financial year, SingTel recorded a net profit of $2.9 billion.
On Thursday shares in Telstra Corporation Limited (ASX:TLS) gained 1.32 per cent, finishing the day at $3.06. The telco has started to reduce the subsidy it pays for mobile handsets after regaining market share. That’s according to research by equities analysts at the Commonwealth Bank of Australia (ASX:CBA). The research adds that it may need to increase the subsidy as rivals catch up with Telstra’s coverage. Telstra posted a full-year net profit of $3.25 billion to June 30 this year.
Ex-dividends
6 companies are going ex-dividend today, including Austal with a $0.06 fully franked dividend, Breville Group with a $0.07 fully franked dividend and Mineral Resources with a $0.27 fully franked dividend.
Commodities
Gold is down $45.10 to $US1,781 an ounce for the December contract on Comex. Silver has fallen $1.03 to $39.50. Copper is up 6 cents at $3.96 a pound. Oil has risen 49 cents to $89.40 a barrel for October light crude in New York.
