The Australian share market is expected to climb at the open, after US stocks advanced amid mounting hopes that central banks will continue stimulus measures around the globe.
Recent better-than-expected economic data from the US and Europe supported Wall Street in early trade, however investors are looking ahead to the employment report for October later this week as they consider when the Federal Reserve could start pulling back on its easy-money policies. The partial government shutdown is expected to weigh on that report.
Figures
Wall Street pushed mostly higher: The Dow Jones Industrial Average surged 129 points to close at 15,747, the S&P 500 added 8 points to close at 1,770 but the NASDAQ lost 8 points to close at 3,932.
In Europe, stocks gained after economic data surprised to the upside and expectations remained that the European Central Bank may also act to boost the economy, possibly as soon as tomorrow local time. London’s FTSE lost 5 points, Paris lifted by 34 points and Frankfurt gained 32 points.
Asian markets were mixed. Japan's Nikkei Stock Average rose 0.8 per cent, supported by a weaker yen. It added 112 points, Hong Kong’s Hang Seng dropped 2 points, and China’s Shanghai Composite lost 18 points.
The Australian share market edged higher to finish flat yesterday following a subdued day of trade. The S&P/ASX 200 index closed 2 points up to finish at 5,434. On the futures market the SPI is 12 points higher.
Currencies
The Australian dollar pushed higher, boosted by a recent batch of strong local economic data. At 8:30AM the Aussie was buying $US95.31 cents, 59.29 Pence Sterling, 94.04 Yen and 70.52 Euro cents.
Economic news
The Australian Bureau of Statistics will release the labour force numbers for October today. Economists are expecting 5,000 jobs to have been created. However economists are split on the forecast for the unemployment rate with some expecting it to hold at 5.7 per cent, and some tipping a slight decrease to 5.6 per cent.
Meantime, the Australian Industry Group will release its performance of construction index for October.
Company news
Fairfax Media Limited
(ASX:FXJ) will hold its annual general meeting in Sydney today. The update comes after the media group announced it will focus on its online business going forward, including the move away from hard copy mastheads such as BRW magazine. Shares in Fairfax dropped 4.17 per cent yesterday to close at 57.5 cents.
Some of David Jones’ Limited
(ASX:DJS) largest shareholders have urged CEO Paul Zahra to reverse his resignation and stay on to deliver turnaround plans, according to media reports. But chairman Peter Mason says a board will not ask a chief executive to remain on the job after publicly announcing his resignation. Shares in David Jones fell 1.62 per cent yesterday to close at $3.03.
Ex-dividend Australia and New Zealand Banking Group
(ASX:ANZ) will pay 91 cents per share fully franked
Bank of Queensland Limited
(ASX:BOQ) will pay 30 cents per share fully franked
National Australia Bank Limited
(ASX:NAB) will pay 97 cents per share fully franked
Commodities
Gold is up $9.70 to $US1,318 an ounce for the December contract on Comex. Silver is up $0.13 to $21.77 for December. Copper is down $0.02 at $3.24 a pound. Oil is up $1.43 at US$94.80 a barrel for December light crude in New York.
