The Australian stock market is set to make modest gains at the open after China growth figures beat expectations and fresh records set on Wall Street amid a series of stellar blue chip companies’ earnings reports.
Locally, the main focus this week will be inflation figures to be released on Wednesday.
The annual rate of inflation is expected to fall from 2.4 per cent to as low as 1.8 per cent, raising expectations of another interest rate cut.
The Australian dollar rose to its highest level in almost five months after the release of solid Chinese economic data on Friday and expectations the RBA won't be raising the cash rate any time soon. At 8:20AM the Aussie was buying $US96.65 cents, 59.77 Pence Sterling, 94.56 Yen and 70.65 Euro cents.
Figures
Wall Street stock indexes rose to fresh records on Friday US time as quarterly profits from Google and other large companies topped expectations. The Dow Jones Industrial Average lifted by 28 points to close at 15,400, the S&P500 added 11 points to close at 1,745 and the Nasdaq gained 51 points to close at 3,914.
European markets followed suit: London’s FTSE and Paris both jumped 46 points and Frankfurt lifted by 53 points.
Asian markets were mostly higher after data on Friday showed China’s economy rebounded in the third quarter of this year and grew at the quickest quarterly pace this year. The National Bureau of Statistics reported China’s economy expanded 7.8 per cent in the third quarter. Tokyo’s Nikkei fell 25 points, Hong Kong’s Hang Seng added 245 points, and China’s Shanghai Composite gained 5 points.
The Australian share market ended last week stronger following better than expected China growth figures and that US debt deal. The S&P/ASX 200 index rallied 38 points on Friday, extending the weekly gain of 94 points to end the week at 5,322. On the futures market the SPI is 22 points higher.
Economic news
HIA and RP Data will release the land report for the June quarter, giving an insight into Australia’s residential land market
To company news:
It’s AGM season and Wotif.com Holdings Limited
(ASX:WTF) will kick off the week with its annual general meeting in Brisbane today. Shareholders will be watching for news on the company’s recently announced plans to launch a campaign on Asian hotels next month. Shares in Wotif lifted 0.21 per cent on Friday to close at $4.67.
Telstra Corporation Limited
(ASX:TLS) is set to officially launch a start-up incubator and shared workspace in Sydney today. The incubator is located in Paddington and will provide cash support and six months rent-free to select start-ups, according to media reports. Shares in Telstra lifted 1.41 per cent on Friday to $5.03.
Commodities
Gold is up $2.30 to $US1,315 an ounce for the December contract on Comex. Silver is down $0.03 to $21.91 for December. Copper is up $0.01 at $3.30 a pound. Oil is up $0.14 at US$100.81 a barrel for November light crude in New York.
