Following positive offshore leads the Australian share market looks set to open higher ahead of the release of China’s September quarter growth figures this afternoon. Overnight Wall Street ended on positive ground as investors digested more earnings reports and housing figures.
US economic news
Housing starts and building permits hit a four year high last month. The Census Bureau has reported US housing starts gained 15 per cent to an annual rate of 872,000 in September. Building permits jumped 11.6 per cent to an annual rate of 894,000 in the same period.
Figures
Wall Street closed Wednesday slightly higher: The Dow Jones Industrial Average added 5 points to close at 13,557, the S&P500 added 6 points to close at 1,461 and the Nasdaq added 3 points to close at 3,104.
European markets gained on Wednesday: London’s FTSE added 40 points, Paris added 27 points and Frankfurt added 18 points.
Asian markets also lifted on Wednesday: Hong Kong’s Hang Seng added 210 points, Tokyo’s Nikkei added 105 and China’s Shanghai Composite added 7 points.
The Australian share market hit a fresh 15-month high yesterday, rallying 0.8 per cent: The S&P/ASX 200 Index rose 37 points on Wednesday to finish at 4,528. On the futures market the SPI is 17 points higher.
Currencies
The Australian Dollar at 8:15AM was buying $US1.038 cents, 64.35 Pence Sterling, 81.99 Yen and 79.18 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International merchandise imports data for September
Company news David Jones Limited’s
(ASX:DJS) chief has taken a pay cut of almost $1 million in the same year the department store retailer booked a 40 per cent profit fall. The company’s annual report reveals CEO Paul Zahra was paid $1.66 million in the last financial year, down 36 per cent from the year before after his performance bonus payments were sliced. DJs confirmed yesterday its strategic plan, launched in March, remains on track and will continue into the current financial year. Shares in David Jones rose 0.78 per cent yesterday to finish at $2.60.
CSL Limited
(ASX:CSL) has affirmed it expects 12 per cent net profit growth this financial year as it launches a $900 million share buyback. Speaking at the healthcare company’s annual general meeting yesterday chairman John Shine said the buyback enable shareholders to benefit from improved investment return ratios, such as on earnings per share and return on equity. CEO Brian McNamee says CSL continues to be very well placed for growth and is anticipating continuing growth amid similar trading conditions. Shares in CSL gained 2.08 per cent yesterday to finish at $47.71.
Ex-dividends today
New Hope Corporation Limited
(ASX:NHC) with a $0.25 fully franked dividend
Ex-dividends tomorrow
BioTech Capital Limited
(ASX:BTC) with a 1 cent unfranked dividend
Commodities
Gold is up $6.70 to $US1,753 an ounce for the December contract on Comex.
Silver is up $0.27 to $33.23 for December.
Copper is up $0.05 at $3.75 a pound.
Oil is up $0.03 at $US92.12 a barrel for November light crude in New York.
