Wall St surges on jobs data: Aus shares to open higher

Australian shares are expected to open sharply higher this morning after Wall Street posted solid gains on Friday.  Stocks received a boost from strong jobs data and comments from the Federal Reserve Chairman. Non-farm payrolls rose by 312,000 in December, and wages posted their biggest full-year gain in a decade, providing a strong counterpoint to concerns that tariffs and rising interest rates are holding back the economy. Later in the session, Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates. Oil prices rose after China said it would hold trade talks with the United States. While gold prices fell on the back of the jobs data

Local economic news

We can expect several  economic indicators this week, today AI Group releases its manufacturing index. Tomorrow the ABS releases the international trade data for November. On Wednesday we can look out for The ABS quarterly job vacancies report for November as well as building approvals data. Finally on Friday, retail trade data is issued by the ABS and AI Group releases its construction index.

Markets

Wall Street closed higher on Friday: The Dow Jones Industrial Average gained 3.3 per cent to close at 23,433 the S&P 500 added 3.4 per cent to close at 2532 and the NASDAQ gained 4.3 per cent higher to close at 6739.

European markets closed also higher: London’s FTSE gained 2.2 per cent, Paris rose 2.7 per cent and Frankfurt was up 3.4 per cent.

Asian markets closed mixed: Tokyo’s Nikkei was down 2.3 per cent, Hong Kong’s Hang Seng gained 2.2 per cent, and China’s Shanghai Composite was up 2.1 per cent.

Returning home, the ASX futures are eyeing a lift of 69 points on Friday the Australian share market closed 0.3 per cent lower or 14 points down at 5,619

Company news

Mining giant, Yancoal's (ASX:YAL) Shandong-based parent company has taken control over a number of bonds belonging to three Hunter Valley coal mines. The move brings Yancoal a step closer to regaining control of the mines. It follows ASX-listed miner recently launching a dual listing of its shares on the Hong Kong Stock Exchange, Shares in Yancoal closed 2.2 per cent lower at $3.60 on Friday.

Ex dividends

HGL (ASX:HNG) is going ex dividend today at 1.5 cents fully franked

Currencies

One Australian Dollar at 7.30 was buying 71.24 US cents, 56.02 Pence Sterling, 77.44 Yen and 63 Euro cents.

Commodities

Iron Ore futures are eyeing a lift of 0.4 per cent.
Gold has fallen $9.00 to US$1286 an ounce.
Silver has fallen $0.01 to US$15.79 an ounce.
Oil has gained $0.87 to US$47.96 a barrel.