The Australian sharemarket is set to open higher after strong leads from Wall Street and renewed optimism in Europe.
US economic news
Initial jobless claims rose 6,000 to 401,000 last week, highlighting continued weakness in the jobs market.
European economic news
The European Central Bank and the Bank of England have held interest rates steady.
The Bank of England voted in favour of increasing its quantitative easing policy by £75 billion.
And the European Central Bank unveiled new measures to help eurozone banks with additional liquidity, reintroducing year-long loans and resuming purchases of covered bonds. The European Commission is also pushing for a coordinated capital injection into banks.
The figures
On Thursday, the Dow Jones Industrial Average gained 183 points to close at 11,123, the S&P500 rose 21 points to close at 1,165 and the NASDAQ was up 46 points to close at 2,507.
European stocks closed higher: London’s FTSE was up 189 points, Paris gained 101 and Frankfurt rose 172.
To Asian markets, and stocks were higher: Hong Kong’s Hang Seng rose 922, Tokyo’s Nikkei gained 139 points and China’s Shanghai Composite was closed.
Yesterday, The S&P/ASX 200 Index closed 143 points stronger at 4,070. On the futures market the SPI is currently up 68 points.
Currencies
The Australian Dollar at 8:30AM was buying $US0.9734, 63.08 Pence Sterling, 74.66 Yen and 72.49 Euro cents.
Australian economic news
The Australian Industry Group/Housing Industry Association performance of construction index (PCI) for September will be released today.
Company news
Yesterday shares in Billabong International Limited (ASX:BBG) closed 6.06 per cent higher at $3.50. The Surfwear retailer could be in breach of its covenants and be forced into a dilutive capital raising if the Australian dollar continues to fall. That’s according to The Australian. Billabong has disputed the controversial report put together by analysts at RBS. Billabong reported a net profit of $118 million for the year to June 30.
On Thursday shares in New Hope Corporation Limited (ASX:NHC) gained 0.16 per cent, finishing the day at $6.11. The Queensland coalminer could fetch up to $6 billion based on recent deals, according to analysts quoted in The Australian. On Wednesday New Hope said it would start the formal process of securing a deal, sending shares soaring. In the 2011 financial year New Hope Corporation reported a full year net profit to $503 million.
Ex-dividends
Three companies are going ex-dividend today, they are Clime Capital with a $0.01 fully franked dividend, Marbletrend Group with a $0.005 fully franked dividend and National Can Industries with a $0.02 fully franked dividend.
Commodities
Gold is up $11.60 to $US1,653 an ounce for the December contract on Comex. Silver has gained $1.65 to $32.00. Copper has risen 14 cents at $3.25 a pound. Oil has gained $2.91 to $82.59 a barrel for November light crude in New York.
