The Australian share market looks set to extend yesterday’s gains after global stocks rose on hopes for Europe's sovereign debt crisis ahead of next week's European Union summit. Investors looked past the International Monetary Fund (IMF) denying reports it will bailout Italy, a warning from Moody’s Investors Service that all EU nations credit ratings are threatened by the crisis and a forecast from the OECD, to expect slower growth in Europe and China next year.
Economic news
The latest report from the Organisation for Economic Co-operation and Development (OECD) has forecast European Growth will slow from 1.6 per cent to 0.2 per cent in 2012, Chinese growth will slow from 9.3 per cent to 8.5 per cent in 2012 and Australia’s growth is forecast to grow from 1.8 per cent to 4 per cent in 2012 before easing to 3.2 per cent in 2013.
US economic news
Sales of newly built homes rose last month, but fell short of expectations. The Commerce Department reported housing sales were up 1.3 per cent in October compared to the month before. The median price for a new house was $US212,300.
Figures
Wall Street started the week higher: The Dow Jones Industrial Average rose 291 points to close at 11,523, the S&P500 added 34 points to close at 1,193 and the Nasdaq firmed 86 points to close at 2,527.
European stocks lifted on Monday: London’s FTSE was up 148 points, Paris was up 156 points and Frankfurt was up 252 points.
To Asian markets, stocks finished higher: Hong Kong’s Hang Seng was up 348 points, Tokyo Nikkei was up 127 and China’s Shanghai Composite was up 3 points.
Yesterday the Australian share market bounced back from last week’s seven week low to end 1.85 per cent stronger. The S&P/ASX 200 Index rallied 74 points to finish at 4,058. On the futures market the SPI is 26 points higher.
Currencies
The Australian Dollar at 8:35AM was buying 99.03 US cents, 63.9 Pence Sterling, 77.25 Yen and 74.41 Euro cents.
Economic news
Due out today from the Housing Industry Association is new home sales data for October.
Company news
Shares in Drillsearch Energy Limited (ASX:DLS) climbed 11.94 per cent yesterday, closing at $0.75, after announcing a wet gas sales deal from two of its discoveries. The explorer has inked a deal with the South Australian Cooper Basin Joint Venture (JV), led by Santos Limited (ASX:STO), Beach Energy Limited (ASX:BPT) and Origin Energy Limited (ASX:ORG), that will see the JV buy gas until April 2013. Drillsearch managing director, Brad Lingo, says the sales deal brings Drillsearch one step closer to becoming a significant gas supplier into the eastern Australian gas markets. Drillsearch Energy narrowed its net loss to $5.6 million in the 2011 financial year.
Shares in Ceramic Fuel Cells Limited (ASX:CFU, LON:CFU) gained 9.52 per cent yesterday, closing at $0.115, after detailing a new customer contract. Ceramic Fuel Cells has received a new order for 105 of its units from a UK power and gas company, E.ON UK. Both companies will work together to launch Ceramic Fuel Cells' power and heating products in the UK market. The technology being used is described as a cleaner and more cost-effective way to generate energy. In the 2011 financial year Ceramic Fuel Cells recorded a net loss of $21.2 million.
Commodities
Gold is up $25.10 to $US1,710 an ounce for the December contract on Comex.
Silver is up $1.15 to $32.16.
Copper is up $0.09 at $3.36 a pound.
Oil is up $1.44 at $98.21 a barrel for January light crude in New York.
