The Australian share market is set to make solid gains today after US stocks pushed higher on hopes of a debt ceiling deal as political negotiations continue.
US President Barack Obama delayed a meeting with Senate and House leaders, as talks on raising the nation's borrowing limit continued. Senate leaders were optimistic about a potential deal as the Treasury's deadline for raising the debt ceiling approaches.
Traders say while investors are worried about the consequences of a default on US debt, most still feel that Washington will avert a government cash crunch this week.
Currencies
The Australian dollar bounced to a one-month high amid those hopes of a resolution to the US political stalemate. At 8:20AM the Aussie was buying $US94.92 cents, 59.39 Pence Sterling, 93.66 Yen and 70.01 Euro cents.
Figures
Wall Street lifted: The Dow Jones Industrial Average gained 64 points to close at 15,301, the S&P 500 added 7 points to close at 1,710 and the NASDAQ jumped 23 points to close at 3,815.
European markets were mostly higher: London’s FTSE gained 20 points, Paris added 3 points and Frankfurt fell by 1 point.
In Asia, both Japan’s Nikkei and Hong Kong’s Hang Seng were closed for a holiday: But China’s Shanghai Composite added 10 points.
The Australian share market lost ground yesterday, closing 0.44 per cent down, amid an unexpected drop in Chinese exports. The S&P/ASX 200 index closed 23 points down to finish at 5,208. On the futures market the SPI is 43 points up.
Economic news
The RBA will release the minutes of its October board meeting and the Australian Bureau of Statistics will release its lending finance data for August as well as new motor vehicle sales figures for September.
Company news
ASX Limited
(ASX:ASX) has urged companies to obtain criminal records, bankruptcy checks and character references on new directors and executives before its new corporate governance guidelines take effect at the start of next year. Under new guidelines being considered by the ASX's corporate governance council, boards of listed companies would be required to make appropriate checks before appointing or nominating directors. Shares in ASX dropped 0.29 per cent yesterday to close at $34.68.
Commonwealth Property Office Fund
(ASX:CPA) has turned down a $2.3 billion takeover offer from Dexus Property Group
(ASX:DXS).Dexus and the Canada Pension Plan Investment Board last week put an indicative, non-binding proposal to CPA, which it has rejected, saying the offer does not provide a compelling value proposition. CPA shares finished flat yesterday at $1.19.
Ex-dividend
Australian Leaders Fund Limited
(ASX:ALF) and
Commodities
Gold is up $8.40 to $US1,276.60 an ounce for the December contract on Comex. Silver is up $0.10 to $21.35 for December. Copper is up $0.03 at $3.30 a pound. Oil is up $0.39 at US$102.41 a barrel for November light crude in New York.
