Outlook: Aus shares ready to rally

Market Reports

The Australian share market looks ready to rally after Wall Street rose overnight. Following a rocky start to the week US stocks bounced on upbeat housing data and hopes for ongoing economic stimulus in Europe. European markets gained as the European Central Bank’s (ECB) President affirmed monetary policy will remain accommodative for some time. The comments came one day after eurozone nations reported weaker than expected economic indicators, sparking a sell-off in equities.
 
Global markets 
 
Wall Street rose on Wednesday: The Dow Jones Industrial Average gained 0.9 per cent to close at 17,210, the S&P 500 gained 0.8 per cent to close at 1,998 and the Nasdaq gained 1 per cent to close at 4,555.
 
European markets moved higher on Wednesday: London's FTSE 100 lifted 0.5 per cent, France's CAC 40 added 1.3 per cent and Germany's DAX improved 0.7 per cent.
 
Asian markets ended mixed on Wednesday: Japan’s Nikkei declined 0.2 per cent, Hong Kong’s Hang Seng added 0.4 per cent, and China’s Shanghai Composite advanced 1.5 per cent.
 
The Australian share market traded in the red yesterday and shed 0.7 per cent by close: The S&P/ASX 200 index dropped 40 points to close at 5,376 on Wednesday. On the futures market the SPI is 23 points higher. 
 
Currencies 
 
The Australian dollar at 7:25am was buying $US0.8884, 54.38 Pence Sterling, 96.87 Yen and 69.53 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Job vacancies data for August
 
Reserve Bank of Australia: Governor Glenn Stevens due to speak at the Melbourne Economic Forum at Melbourne University
 
FY14 results due out today 
 
Brickworks Limited (ASX:BKW) will today unveil its 2014 financial year report after earlier predicting it will deliver a solid performance. Over the first half the building products manufacturer’s net profit firmed 0.4 per cent to $56.3 million. At the time Brickworks said if sales momentum is sustained its building products group is well placed to deliver significantly higher earnings in the second half. The company also forecast its final quarter earnings will benefit from the completion of major capital projects. Shares in Brickworks closed steady at $13.50 on Wednesday. 
 
Washington H. Soul Pattinson and Co. Limited (ASX:SOL) is also expected to release annual results. The diversified investment company’s net profit slipped almost 1 per cent to $73.7 million in the first half. The result was attributed to a lower contribution from New Hope Corporation Limited (ASX:NHC), partially offset by higher contributions from Brickworks and TPG Telecom Limited (ASX:TPM). At the time Chairman Robert Millner noted a steady increase in the market value of the company’s listed equity investments. Shares in Washington H. Soul Pattinson and Co rose 0.35 per cent to close at $14.20 on Wednesday. 
 
Ex-dividends 
 
Cape Lambert Resources Limited (ASX:CFE) paying a 2 cent fully franked dividend
Myer Holdings Limited (ASX:MYR) paying a 5.5 cent fully franked dividend
Nuplex Industries Limited (ASX:NPX) paying a 8.5256 cent unfranked dividend
Southern Cross Media Group Limited (ASX:SXL) paying a 3 cent fully franked dividend
 
Commodities 

Gold has dipped $2.50 to $US1,219.50 an ounce for the December contract on Comex. 
Silver has slipped $0.07 to $17.70 for December. 
Copper has firmed $0.02 to $3.05 a pound. 
Oil has lifted $1.24 to $US92.80 a barrel for November light crude in New York.