Buoyed by positive leads, on the back of the US Federal Reserve’s latest stimulus action, the Australian share market looks set to rise into a new week.
US economic news
The Census Bureau reported retail sales rose more than expected, gaining 0.9 per cent in August.
The Bureau of Labor Statistics showed US inflation was in line with expectations, with the consumer price index lifting 0.6 per cent in August.
The Federal Reserve posted a larger than expected fall in industrial production, declining 1.2 per cent in August.
Thomson Reuters and University of Michigan’s preliminary index of consumer sentiment surged more than expected, to 79.2 in September from 74.3 the month before.
Figures
Wall Street finished last week at multi-year highs: The Dow Jones Industrial Average gained 54 points to close at 13,593, the S&P500 gained 6 points to close at 1,466 and the Nasdaq gained 28 points to close at 3,184.
European markets rose on Friday: London’s FTSE lifted 96 points, Paris lifted 79 points and Frankfurt lifted 102 points.
Asian markets also firmed on Friday: Hong Kong’s Hang Seng added 582 points, Tokyo’s Nikkei added 164 and China’s Shanghai Composite added 13 points.
The Australian share market rallied to a four month high on Friday to finish last week 1.5 per cent higher: The S&P/ASX 200 Index advanced 51 points on Friday to end the week 64 points stronger at 4,390. On the futures market the SPI is now 20 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.056 cents, 65.08 Pence Sterling, 82.75 Yen and 80.48 Euro cents.
Economic news due out today
The Australian Bureau of Statistics: New motor vehicle sales for August
Company news ANZ Banking Group
(ASX:ANZ) has left its variable interest rates for Australian retail mortgages and small business lending unchanged at 6.8 per cent per annum. The news came following the bank’s September interest rate review on Friday and after the Reserve Bank of Australia kept the official cash rate on hold at 3.5 per cent earlier this month. Shares in ANZ Banking Group firmed 0.37 per cent on Friday ending the week at $24.23.
Commonwealth Bank of Australia
(ASX:CBA) has reportedly agreed to pay almost $270 million to customers hit by the collapse of Storm Financial in 2008. According to Fairfax Media a settlement at the end of last week will see CBA pay an extra $136 million to in addition to $132 million the bank has already agreed to pay. Australian Securities and Investments Commission chairman Greg Med-craft says the compensation deal is a timely, fair and certain outcome for Storm investors who borrowed from CBA. Shares in Commonwealth Bank rose 0.47 per cent on Friday finishing the week at $55.28.
Commodities
Gold is up $31.50 to $US1,772 an ounce for the December contract on Comex.
Silver is down $0.12 to $34.66 for December.
Copper is up $0.12 at $3.83 a pound.
Oil is up $0.69 at $US99 a barrel for October light crude in New York.
Ex-dividends today
Australian Power and Gas Company Limited
(ASX:APK) Tranzact Financial Services Limited
(ASX:TFS)
