The Australian market is poised to open higher after global markets rose on hopes for Europe’s plans to recapitalise its banks. Investors were encouraged by news that Slovakia, who yesterday voted down a plan to approve bailout funds, has decided to hold a new vote over the European Financial Stability Facility.
Figures
On Wednesday: The Dow Jones Industrial Average rose 103 points to close at 11,519, the S&P500 gained 12 points to close at 1,207 and the NASDAQ added 22 points to close at 2,605.
European stocks closed higher: London’s FTSE was up 46 points, Paris was up 76 and Frankfurt was up 129.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 188 points, Tokyo Nikkei was down 35 and China’s Shanghai Composite was up 71.
The Australian share market closed 0.55 per cent lower on Wednesday: The S&P/ASX 200 Index shed 23 points to close at 4,204. On the futures market the SPI is 30 points higher.
Currencies
The Australian Dollar at 8:40AM was buying $US1.0144, 64.43 Pence Sterling, 78.39 Yen and 73.62 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is labour force data for September.
Company news
On Wednesday shares in Westpac Banking Corporation (ASX:WBC) lost 1.32 per cent, closing at $21.63. Westpac’s chief economist, Bill Evans, has again called on the Central Bank to cut rates, citing steep falls in house prices as a damaging factor in undermining consumer confidence. The comments came on the same day Westpac and the Melbourne Institute posted a slight lift in consumer sentiment in October, but still almost 17 per cent below last year’s levels. In July Mr Evans made headlines when he bucked the trend and forecast that rates would be cut before the end of 2011. In the first half of its 2011 financial year Westpac recorded a net profit of $3.996 billion.
Yesterday shares in Iluka Resources Limited (ASX:ILU) fell 3.43 per cent, closing at $15.50. The mineral sands producer has forecast a 10 per cent increase in the average price for zircon in the last quarter of the 2011 calendar year. In the third quarter, the weighted average price of zircon fetched around $US2,200 per tonne. Iluka has chosen to update the market to reassure investors in light of global concerns and weak sentiment. Iluka’s third quarter production report, for the three months to September 30, is due later today. In the first half of the 2011 financial year Iluka Resources swung from a loss to a profit of $146 million.
Ex-dividends
The only company going ex-dividend: Ausdrill with a $0.06 cent fully franked dividend. Coming up tomorrow: Australian Leaders Fund.
Commodities
Gold is up $21.60 to $US1,682 an ounce for the December contract on Comex.
Silver is up $0.79 cents to $32.79.
Copper is $0.10 higher $3.39 a pound.
Oil is down $0.24 at $85.57 a barrel for November light crude in New York.
