The Australian share market is poised for a solid start to the day, after the European Central Bank detailed a bond-buying plan overnight that restored sentiment and lifted world markets.
World news
In an effort to save the euro, European Central bank chief revealed his masterplan overnight, designed to reduce borrowing costs. The ECB will buy-back bonds of struggling nations as well as provide operating funds to heavily indebted eurozone countries. Interest rates have been kept on hold at 0.75% and the bank lowered its outlook for economic growth in 2012.
US economic news
Stronger than expected jobs data was released overnight. According to ADP's National Employment Report, U.S. non-farm private sector employment rose by over 200,000 in August.
The Institute for Supply Management reported its index of activity in the service sector increased to 53.7 in August from 52.6 in July. Analysts were expecting the index to come in at 52.4.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 245 points to close at 13,292 the S&P500 added 29 points to close at 1,432 and the Nasdaq gained 67 points to close at 3,136.
European markets closed up: London’s FTSE was up by 119 points, Paris added 104 and Frankfurt gained 203 points.
Asian markets closed up: Hong Kong’s Hang Seng added 64 points, Tokyo’s Nikkei added 1 and China’s Shanghai Composite gained 14 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 34 points up to finish at 4,313. On the futures market the SPI is 52 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.028, 64.56 Pence Sterling, 81.11 Yen and 81.42 Euro cents.
Economic news
Due out today from the Australian Industry Group is the Performance of Construction Index for August. The Australian Bureau of Statistics will release the trade balance for July. The Reserve Bank of Australia reports on foreign reserves for August.
Company news
GRG International Limited
(ASX:GRG) says it's set to acquire US based automatic teller machine manufacturer Triton for about $24.6 million. GRG's chief says the acquisition is a major boost for the company into western markets and will greatly strengthen its presence in India. The integration is expected to increase annual revenues by more than $55 million and annual profits by over $6 million. Shares in GRG closed 36.36 per cent up yesterday at $0.075.
BlueScope Steel Limited
(ASX:BSL) could reportedly face ongoing three hour stoppages at its Port Kembla facility as negotiations with the Australian Workers’ Union continue over new enterprise agreements. According to Fairfax Media, union officials say stoppages will be held today and into next week unless negotiations resume. The steel maker reported an annual net loss of $1.04 billion last month, as it was hit by impairment charges, restructuring costs and a strong Australian dollar. Shares in Bluescope closed 1.49 per cent up yesterday at $0.34.
Commodities
Gold is up $11.60 to $US1,705.60 an ounce for the December contract on Comex.
Silver is up $0.35 to $32.67 for December.
Copper is down $0.02 at $3.51 a pound.
Oil is down $0.74 at US$94.62 a barrel for October light crude in New York.
Ex-Dividends
Academies Australasia Group Limited
(ASX:AKG) 2.5 cents
Macquarie Telecom Group Limited
(ASX:MAQ) 12 cents
Templeton Global Growth Fund Limited
(ASX:TGG)1.5 cents
