The Australian share market is expected to tick higher at the open, after US stocks climbed as investors shrugged off weaker-than-expected readings on industrial output and manufacturing, amid rising hopes the central bank will continue to stimulate the economy.
Local economists say economic reforms in China announced over the weekend should also help lift our market today.
US economic news
Industrial production slipped 0.1 per cent in October, bucking predictions of a 0.2 per cent increase in output.
Meantime - the Federal Reserve Bank of New York's Empire State of manufacturing activity index showed business conditions contracted in New York this month, against forecasts for expansion.
Currencies
And it was news from the US that pushed the Australian dollar higher this morning, with comments from Federal Reserve nominee Janet Yellen that stimulus measures are imperative. At 7:30AM the Aussie was buying $US93.79 cents, 58.2 Pence Sterling, 94.12 Yen and 69.54 Euro cents.
Figures
Wall Street continued to go from strength to strength: The Dow Jones Industrial Average rallied 85 points to close at 15,962, the S&P500 gained 8 points to close at 1,798 and the Nasdaq gained 13 points to close at 3,986.
European markets edged higher, with the Stoxx Europe 600 rising 0.2 per cent after Eurostat, confirmed the annual rate of euro-zone inflation was 0.7 per cent in October. London’s FTSE added 27 points, Paris gained 8 points and Frankfurt lifted by 19 points.
Asian markets rallied. Japan's Nikkei Stock Average climbed 2 per cent as a weaker yen boosted exporters' shares and Chinese markets lifted ahead of the Government’s promised reforms to loosen the Communist authorities' grip on the economy. Tokyo’s Nikkei added 290 points, Hong Kong’s Hang Seng soared by 383 points, and China’s Shanghai Composite gained 35 points.
The Australian share market ended the week on a high note. The S&P/ASX 200 index soared 46 points on Friday to erase the week’s falls and finish 1 point higher overall at 5,402. On the futures market the SPI is 8 points up.
Economic data
China will today release property prices for October.
Company news
iSelect Limited
(ASX:ISU) will hold its annual general meeting today. The update comes just weeks after the corporate watchdog announced it was concluding its investigation in to the company with no further action, following allegations iSelect did not meet its disclosure obligations. Shares in iSelect lifted 0.84 per cent on Friday to close at $1.20.
Orica Limited
(ASX:ORI) says it expects higher profits next year as key North American coal markets improve and the company sells more sophisticated explosives. Chief executive Ian Smith told media Orica had boosted its cash flow by adopting a capital light strategy. Shares in Orica were virtually flat on Friday, closing at $23.41.
Commodities
Gold is down $30.30 to $US1,287 an ounce for the December contract on Comex. Silver is up $0.01 to $20.73 for December. Copper is up $0.01 at $3.17 a pound. Oil is up $0.08 at US$93.84 a barrel for December light crude in New York.
