The Australian share market was boosted by sharp gains in the mining sector and better than expected jobs data, before closing 0.8 per cent higher as anticipation builds ahead of tonight’s European Central Bank meeting.
Today, the S&P/ASX 200 index closed 34 points up to finish at 4,313. On the futures market, the SPI is currently 33 points higher.
Economic news
The nation’s unemployment rate has dipped in August, bucking expectations of a rise. According to the Australian Bureau of Statistics (ABS), unemployment came back to 5.1 per cent from 5.2 per cent in July, underpinned by fewer people searching for work. The ABS reported the participation rate eased to 65 per cent. The Australian economy added 600 full time jobs but lost 9,300 part time jobs for the month.
Company news
Shares in Qantas Airways Limited
(ASX:QAN) were given a boost today as the airline confirmed it has inked a 10-year alliance deal with Emirates, after months of negotiations. Under the terms of the agreement, Qantas will offer routes to Europe via Dubai shifting its hub from Singapore. The two airlines will focus on developing an integrated network that covers coordinated pricing, sales and scheduling, but neither will hold shares in either company. The agreement is pending regulatory approval and scheduled to commence in April next year. Shares in Qantas closed 6.67 per cent up at $1.20.
Australia and New Zealand Banking Group
(ASX:ANZ) customers were handed a victory by the High Court today who has allowed an appeal which challenges the banks allegedly excessive fees. A class action of 38,000 ANZ customers are seeking compensation for fees paid to the bank in late payments and overdrafts. The action forms part of a wider claim involving eight banks, 170,000 customers and over $200 million in fees, has become Australia's biggest class action. Shares in ANZ closed 0.17 per cent up at $24.21.
Shares in Lynas Corporation Limited
(ASX:LYC) have surged more than 40 per cent today, after the rare earths developer scored a temporary operating licence for its Malaysian refinery.
Biotech company Starpharma Holdings Limited (ASX:SPL, OCTQX:SPHRY) has inked a cancer drug agreement with global pharmaceutical company AstraZeneca.
Surfwear retailer Billabong International Limited
(ASX:BBG) has received a takeover bid from an unnamed bidder who has matched US private equity firm TPG Capital’s offer of $1.45 cash per share. Billabong maintains that neither proposals reflect the fundamental value of the company.
Shares in Fortescue Metals Group Limited
(ASX:FMG) have fallen under $3.00 with the iron ore producer today announcing the resignation of joint company secretary, Roderick Campbell.
Best and worst performers
The best performing sector was Consumer Discretionary adding 21 points to close at 1,276.The worst performing sector was Health Care, losing 49 points to close at 10,370 points.
The best performing stock in the S&PASX 200 was Lynas Corporation Limited
(ASX:LYC), rising 41.18 per cent to close at $0.84. Shares in Boart Longyear and Beach Energy also closed higher.
The worst performing stock was Fortescue Metals Group Limited
(ASX:FMG), dropping 4.81 per cent to close at $2.97. Shares in NRW Holdings and Emeco Holdings also closed lower.
Commodities
Gold is trading at $US1,702 an ounce.
Light crude is $0.62 up at $US95.98 a barrel.
The Australian dollar
The Australian dollar is buying $US1.023.
