Outlook: Aus shares eye Wall St gains

Following mostly positive leads, the Australian share market looks set to open in positive territory this morning. Wall Street closed higher overnight as a strong earnings result from Visa pushed the price weighted Dow Jones Industrial Index more than 1 per cent higher. 

 

The gains in the US were boosted by better than expected GDP figures with the Commerce Department reporting GDP growth in the third quarter was up to 3.5 per cent at an annualized rate. While jobless claims figures from the US Labor Department showed underutilization of labor was improving.

 

And ANZ bank is expected to report its full year results today with analysts pointing towards a record profit figure.

Global figures

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1.3 per cent to close at 17,195, the S&P 500 added 0.6 per cent to close at 1,995 and the NASDAQ gained 0.4 per cent to close at 4,566.

 

European markets closed up: London’s FTSE gain 0.2 per cent, Paris is up 0.7 per cent and Frankfurt gained 0.4 per cent.

 

Asian markets closed mixed: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng lost 0.5 per cent, and China’s Shanghai Composite is up 0.8 per cent.

 

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 29 points up to finish at 5,476. On the futures market the SPI is 25 points up. 

 

Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.8829 cents, 55.20 Pence Sterling, 96.42 Yen and 70.04 Euro cents.

 

Economic news

Due out today from the Australian Bureau of Statistics is producer price indexes for the September quarter, and the RBA will release financial aggregates also for September.

 

Company news

 

AMP Limited (ASX:AMP) will acquire a 19.99 per cent stake in China Life Pension Company in a deal worth $240 million. The wealth management company says China Life is the largest pension company in China, and that AMP will be the first foreign company to own a stake in a Chinese pension company with three licenses allowing end to end services throughout China. CEO Craig Meller says the acquisition provides AMP with a strategic foothold in the rapidly growing Enterprise Annuity segment of China’s pension market. Shares in AMP closed 1.59 per cent up yesterday at $5.74.

 

Cover-More Group Limited (ASX:CVO) has appointed Mark Steinberg as new Group Chief Financial Officer. The travel and medical insurance provider says Mr Steinberg will replace John Murphy who will move into the new executive role of Group Chief Operating Officer. The company says Mr Steinberg will make the move at the end of January next year. Shares in Cover More closed 0.92 per cent up yesterday at $2.19

 

Commodities

Gold is down $26.30 to $US1,199 an ounce for the December contract on Comex.
Silver is down $4.89 to $16.42 for December.
Copper is down $0.04 at $3.06 a pound.
Oil is down $1.08 at US$81.12 a barrel for December light crude in New York.