The Australian share market is poised to move higher this morning after US stocks surged overnight as the US Federal Reserve announced an aggressive stimulus program designed to boost its economy and reduce high unemployment.
US economic news
In a move that hasn’t been seen since the GFC, the US Federal Reserve has acted boldly in an effort to curb national unemployment and spur its economy. The Fed said it would buy $US40 billion worth of mortgage-backed securities each month until the jobs market improved. Additionally, the Fed will continue its Operation Twist program of selling short-term bonds to buy longer-term bonds. Short term interest rates will be kept near zero until at least the middle of 2015.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average soared 207 points to close at 13,540, the S&P500 added 23 points to close at 1,460 and the Nasdaq added 42 points to close at 3,156.
European markets closed mixed: London’s FTSE gained 38 points, Paris lost 42 and Frankfurt lost 33 points.
Asian markets closed mixed: Hong Kong’s Hang Seng lost 28 points, Tokyo’s Nikkei added 35 and China’s Shanghai Composite lost 16 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 22 points down to finish at 4,339. On the futures market the SPI is 33 points higher.
Currencies
The Australian Dollar at 7:20AM has surged to its highest level in a month, buying $US1.055, 65.34 Pence Sterling, 81.73 Yen and 81.24 Euro cents.
Company news Charter Hall Group
(ASX:CHC) has acquired a 9.69 hectare site in Queensland from property developer Watpac Limited
(ASX:WTP) for $20.85 million. The integrated property group has issued $15 million at settlement with the balance to be finalised in the 2013 financial year. Charter Hall says the acquisition reflects an initial yield of 7.9 per cent. Shares in Charter Hall closed 0.72 per cent lower yesterday at $2.76.
Newcrest Mining Limited’s
(ASX:NCM) operation at the Ridgeway underground mine in NSW has been temporarily suspended following a failure of its conveying system. Repairs are expected to take up to 15 days. The net impact to production is estimated at about 5000 -10,000 ounces of gold and about 100 to 200 tonnes of copper. The gold miner maintained its annual production guidance. Shares in Newcrest closed 0.15 per cent lower yesterday at $26.43.
Ex-dividends
Tassal Group Limited (ASX:TGR
Commodities
Gold is up $38.40 to $US1,772 an ounce for the December contract on Comex.
Silver is up $1.49 to $34.78 for December.
Copper is up $0.02 at $3.71 a pound.
Oil is down $0.28 at US$98.00 a barrel for October light crude in New York.
