The Australian share market looks set to surge on the first day of the month after global markets rallied on news a coalition of central banks are taking action to tackle Europe’s sovereign debt crisis. The united pledge saw all of Wall Street’s three major stock indexes jump more than 4 per cent for the day.
Central banks from the eurozone, UK, US, Canada, Japan and Switzerland have released a statement announcing they will launch “co-ordinated actions to enhance their capacity to provide liquidity support to the global financial system”. This will be done through "lowering the cost of providing dollars to banks to ease strains in financial markets".
US economic news
Ahead of the US government’s key monthly jobs report, two reports have delivered a positive read on the US jobs market:
Payroll-processing company ADP says the private-sector gained 206,000 non-farm jobs in November, compared to 130,000 jobs added the month before.
Outplacement consulting firm Challenger, Gray & Christmas reported planned job cuts dropped 0.7 per cent in November from the month before. However, the amount of job cuts this year has already surpassed last year’s total.
Figures
Wall Street advanced on Wednesday: The Dow Jones Industrial Average climbed 490 points to close at 12,046, the S&P500 put on 52 points to close at 1,247 and the Nasdaq increased 105 points to close at 2,620.
European stocks finished higher on Wednesday: London’s FTSE was up 168 points, Paris was up 128 points and Frankfurt was up 289 points.
To Asian markets, stocks closed lower: Hong Kong’s Hang Seng was down 267 points, Tokyo Nikkei was down 43 and China’s Shanghai Composite down 79 points.
The Australian share market ended the last day of November 0.4 per cent higher after volatile trade: The S&P/ASX 200 Index added 18 points to close at 4,120. On the futures market the SPI is 141 points stronger.
Currencies
The Australian Dollar at 8:45AM was buying $US1.0281 cents, 65.52 Pence Sterling, 79.77 Yen and 76.52 Euro cents.
Expected economic news
The Australian Bureau of Statistics retail trade and building approvals data for October.
Australian Industry Group and Pricewaterhouse Coopers performance of manufacturing index for November.
Reserve Bank of Australia index of commodity prices for November.
Company news
Shares in Aquila Resources Limited (ASX:AQA) rose 3.51 per cent yesterday, closing at $6.48. Aquila Resources has announced the Federal Government has granted it conditional approval to proceed with its $5.8 billion iron ore project in the Pilbara region of Western Australia. The miner can now progress with the construction and operation of mining and final approvals are expected in the second quarter next year. Aquila Resources extended its loss to $64.6 million in the 2011 financial year.
Shares in Flinders Mines Limited (ASX:FMS) lifted 1.82 per cent yesterday, closing at $0.28, on the same day a report emerged the mineral explorer and takeover target could still catch the eye of more suitors. Flinders backed a $554 million takeover bid from Russia's third-largest steel producer last week, a 92 per cent premium to its share price before the bid was launched. Fairfax Media reports potential suitors include Rio Tinto Limited (ASX:RIO), Atlas Iron Limited (ASX:AGO) or Fortescue Metals Group Limited (ASX:FMG). Flinders Mines reported a net loss of $7.96 million in the 2011 financial year.
Commodities
The price of gold is up $32.10 to $US1,745 an ounce for the December contract on Comex.
Silver is up $0.88 to $32.73.
Copper is up $0.19 at $3.56 a pound.
Oil is up $0.57 at $100.36 a barrel for January light crude in New York.
