Outlook: Aus shares eye Wall Street records

With broadly positive results from the US and Europe the Australian share market looks set for an optimistic start. 

 

Both the Dow Jones Industrial average and the S&P 500 ended the day at record highs on the back of mid-term election results that saw Republicans take control of US  Senate.

 

US labor figures out overnight pointed towards increased private sector payrolls as well as a jump in oil prices held stocks higher. It was only the tech heavy Nasdaq that pulled Wall Street lower.

 

In response to such exuberance the Aussie dollar has seen some major movement, dipping below $US0.86. 

 

Global figures

Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.58 per cent to close at 17,484.5, the S&P 500 added 0.57 per cent to close at 2,023.6 and the NASDAQ lost 0.6 per cent to close at 4,621.

 

European markets closed up: London’s FTSE gained 1.32 per cent, Paris is up 1.89 per cent and Frankfurt gained 1.63 per cent.

 

Asian markets closed mixed: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng is down 0.6 per cent, and China’s Shanghai Composite lost 0.5 per cent.

 

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 2 points down to finish at 5,518. On the futures market the SPI is 14 points up. 

 

Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.8595 cents, 53.82 Pence Sterling, 98.59 Yen and 68.85 Euro cents.

 

Economic news

Due out today from the Australian Bureau of Statistics is labor force figures for October, while the HIA will release its trades report for the September quarter. 

 

Company news

 

MEO Australia Limited (ASX:MEO) has announced a merger with Neon Energy which will see shareholders of both companies each holding 50 per cent of the merged group. The company says MEO shareholders will receive 0.7369 Neon shares for each MEO share held with the merger having the unanimous support of the Neon and MEO boards. The oil and gas explorer says the focus of the move is on cost synergies with a substantial reduction in annual corporate overheads. Shares in MEO jumped 28.57 per cent higher yesterday to $0.027

Shares in McAleese Limited (ASX:MCS) are up more than 2 per cent as it announces unaudited first quarter revenue of $190 million. The transport and logistics company says it has completed a restructuring and continues to work with its major customer Atlas Iron to achieve cost savings. The company also announced the appointment of John Russell as Group Chief Financial Officer, he commenced in the role yesterday.  Shares in McAleese closed 2.5 per cent up yesterday at $0.41

 

Commodities

Gold is down $22 to $US1,146 an ounce for the December contract on Comex.
Silver is down $0.51 to $15.44 for December.
Copper is down $0.01 at $3.01 a pound.
Oil is up $1.49 at US$78.68 a barrel for December light crude in New York.