The Australian share market is looking set to continue rallying after global markets gained overnight. European markets were bolstered by reports suggesting the European Central Bank (ECB) is considering corporate bond buying to strengthen its balance sheet. Wall Street was supported by the stimulus speculation, a lift in existing-home sales and upbeat earnings from Apple Inc (NASDAQ:AAPL) which also boosted tech stocks. On the local front inflation figures are expected to remain benign for the September quarter and a series of annual general meeting will continue to be held.
Global markets
Wall Street surged on Tuesday: The Dow Jones Industrial Average gained 1.3 per cent to close at 16,615, the S&P 500 gained almost 2 per cent to close at 1,941 and the Nasdaq gained 2.4 per cent to close at 4,419.
European markets turned higher on Tuesday: London's FTSE 100 rose 1.7 per cent, France's CAC 40 rose 2.3 per cent and Germany's DAX rose 1.9 per cent.
Asian markets ended mixed on Tuesday: Japan’s Nikkei tumbled 2 per cent, Hong Kong’s Hang Seng firmed 0.08 per cent, and China’s Shanghai Composite dropped 0.7 per cent.
The Australian share market staged a late recovery yesterday to post its sixth straight session of gains: The S&P/ASX 200 index closed 6 points higher at 5,325 on Tuesday. On the futures market the SPI is 55 points stronger.
Currencies
The Australian dollar at 7:25am was buying $US0.8782, 54.51 Pence Sterling, 93.91 Yen and 69.07 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Consumer Price Index for September quarter
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Commonwealth Bank of Australia
(ASX:CBA): Business Sales Indicator for September
Company news
Australia’s biggest company BHP Billiton Limited
(ASX:BHP) will release its first quarter production report today ahead of its annual general meeting tomorrow. The report will be for the same period BHP put a knife to costs across its operations including cutting jobs from its domestic coal operations. BHP’s production numbers are set to be revealed just one week after rival mining company Rio Tinto Limited
(ASX:RIO) released its quarterly output report. Rio Tinto last week posted a 12 per cent jump in quarterly global iron ore production, putting it on track to exceed its annual output target. Shares in BHP Billiton dipped 0.27 per cent to close at $33.75 cents yesterday ahead of today’s announcement.
Shares in Lincoln Minerals Limited
(ASX:LML) soared yesterday after advising it expects to lodge a mining lease application for Australia’s newest graphite mine in the current quarter. The graphite developer says the global demand market is increasingly favouring new mine start-ups and market sentiment towards graphite has “warmed up and held” over this year. Lincoln Minerals is focussed on its Kookaburra Gully graphite project on South Australia’s Eyre Peninsula where it is aiming to achieve maiden production next year. Shares in Lincoln Minerals soared 31.58 per cent to close at $0.05 cents yesterday following the announcement.
Ex-dividends
ICSGlobal Limited
(ASX:ICS) paying a 0.1 cent unfranked dividend
Ridley Corporation Limited
(ASX:RIC) paying a 2 cent fully franked dividend
Commodities
Gold has gained $7.00 to $US1,252 an ounce for the December contract on Comex.
Silver has lifted $0.19 to $17.55 for December.
Copper has firmed $0.04 to $3.03 a pound.
Oil has added $0.10 to $US82.81 a barrel for November light crude in New York.
