The Australian share market is set to spike into the new week after Wall Street rebounded on Friday. While America’s major indices still remain lower over the month and week US stocks got a boost from upbeat economic data and positive earnings reports. US housing starts rose more than expected in September and consumer confidence gained against expectations for a fall.
In the week ahead the local economic calendar will be dominated by the Reserve Bank of Australia’s October meeting minutes tomorrow and inflation figures on Wednesday. China’s third quarter growth figures will also be in the spotlight tomorrow while America's earnings season will ramp up over the week.
Global markets
Wall Street lost 1 per cent over last week but soared on Friday: The Dow Jones Industrial Average gained 1.6 per cent to close at 16,380, the S&P 500 gained 1.3 per cent to close at 1,888 and the Nasdaq gained 1 per cent to close at 4,258.
European markets dropped 0.8 per cent over last week but rallied on Friday: London's FTSE 100 advanced 1.9 per cent, France's CAC 40 advanced 2.9 per cent and Germany's DAX advanced 3.1 per cent.
Asian markets fell over last week but ended mixed on Friday: Japan’s Nikkei sank 1.4 per cent, Hong Kong’s Hang Seng rose 0.5 per cent, and China’s Shanghai Composite slipped 0.7 per cent.
The Australian share market lifted over last week and ended on a high note: The S&P/ASX 200 index closed 17 points higher on Friday, widening the weekly gain of 83 points to finish at 5,272. On the futures market the SPI is 68 points stronger.
Currencies
The Australian dollar at 7:30am was buying $US0.876, 54.38 Pence Sterling, 93.93 Yen and 68.7 Euro cents.
Economic news
New South Wales has jumped to the top of Australia’s best performing state economies for the first time since July 2011. CommSec’s October State of the States report has shown NSW is top of rankings on population growth and dwelling starts and second on retail trade, business investment and unemployment. The quarterly survey of state and territory economies has also revealed former number one Western Australia has lost ground on retail trade, equipment investment and population growth due to the fading mining boom.
Company news
Shopping Centres Australasia Property Group
(ASX:SCP) has bought The Markets Shopping Centre in South Brisbane, Queensland. The real estate investment trust has paid $32 million to a private investor group, representing an initial yield of around 7.2 per cent. The asset is a neighbourhood shopping centre and the company plans to pay for the purchase through existing cash and debt facilities. Shares in Shopping Centres Australasia Property Group gained 0.6 per cent to close at $1.665 on Friday ahead of the announcement.
Federation Centres Limited
(ASX:FDC) has tied up the purchase of a stake in the Mt Ommaney Centre in Brisbane, Queensland. The real estate investment trust has acquired a 25 per cent interest in the asset as part of a co-ownership deal with TIAA Henderson Real Estate. TIAA Henderson Real Estate hold the remaining 75 per cent stake and
Federation Centres will provide ongoing property management services at the centre. Shares in Federation Centres fell 1.15 per cent to close at $2.59 on Friday following the announcement.
Commodities
After gaining more than $17 over last week the price of gold has dipped $2.20 to $US1,239 an ounce for the December contract on Comex.
Silver has slipped $0.11 to $17.33 for December.
Copper has lifted $0.01 to $3.00 a pound.
Oil has firmed $0.05 to $US82.75 a barrel for November light crude in New York.
