The Australian sharemarket is expected to open stronger this morning. US stocks closed higher following an agreement to tackle the European debt crisis, although details are still lacking.
US economic news
First time jobless claims fell by 2,000 to 402,000 last week.
The number of Americans who signed contracts to buy new homes unexpectedly fell in September. The National Association of Realtors reported its index of sales agreements fell 4.6 per cent for the month, to a reading of 84.5. A reading of 100 is healthy.
And the US economy grew at its fastest pace in a year in the September quarter. US gross domestic product grew at a 2.5 per cent annual rate in the third quarter.
European Economic news
European leaders have agreed to boost the rescue fund to one trillion euros and have persuaded bondholders to take 50 per cent losses on Greek debt.
The figures
The Dow Jones Industrial Average gained 340 points to 12,209, the S&P500 added 43 points to close at 1,285 and the Nasdaq rose 88 points to close at 2,739.
European stocks closed higher: London’s FTSE was up 161 points, Paris gained 199 and Frankfurt rose 322 points.
To Asian markets, stocks finished higher: Hong Kong’s Hang Seng was up 622 points, Tokyo’s Nikkei gained 178 and China’s Shanghai Composite rose 8.
The Australian share market closed higher on Thursday despite being closed for most of the day. The S&P/ASX 200 Index gained 106 points to close at 4,348. On the futures market the SPI is currently 59 points higher.
Currencies
The Australian Dollar at 8:35AM has surged overnight to buy $US1.0724 cents, 66.62 Pence Sterling, 81.48 Yen and 75.62 Euro cents.
Australian economic news
The Queen will formally open the Commonwealth Heads of Government Meeting (CHOGM) in Perth.
Company news
Qantas Airways Limited (ASX:QAN) shares firmed 3.63 per cent yesterday, closing at $1.57. Chief executive Alan Joyce has apologised for delays expected today as hundreds of workers strike over pay. It’s expected 10,000 passengers on 70 flights will have their flights disrupted today as baggage handlers, ground staff and catering workers walk off the job. Qantas reported a net profit of $249 million for the 2011 financial year.
ASX Limited’s (ASX:ASX) shares rose 1.36 per cent yesterday, closing at $30.56. Trading platform rival, Chi-X’s debut may be muted by high costs. That’s according to a report in The Australian. Observers expect Chi-X to struggle with the heavy costs of supervision and connection to a new operator that will slow its growth. Chi-X opens for business on Monday. ASX reported a full year net profit of $352 million.
Ex-dividends
There are six companies going ex-dividend today, they are Alcoa, CTI Logistics, GPT Group, Harvey Norman, Trafalgar Corporate and The Warehouse Group.
Commodities
Gold is up $24.20 to $US1,747 an ounce for the December contract on Comex. Silver is up $1.80 to $35.11. Copper has risen $0.20 at $3.69 a pound. Oil has gained $3.76 to $93.96 a barrel for November light crude in New York.
