Following a late rally from Wall Street in afternoon trade, the Australian share market looks set for another positive open. It was the biggest one-day gain for the Dow Jones Industrial Average and the S&P 500 since 2011, thanks to a number of bargain hunters coming forward before the closing bell.
US economic news
New orders for long-lasting manufactured goods have jumped 2 per cent in July; a key reading that tracks business investment demand. The Commerce Department figures showed a 4.1 per cent gain in June, but overall July’s figure exceeded economist’s expectations of a 0.1 per cent increase.
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 3.95 per cent to close at 16,286, the S&P 500 gained 3.9 per cent to close at 1,941 and the NASDAQ gained 4.2 per cent to close at 4,698.
European markets closed lower: London’s FTSE lost 1.7 per cent, Paris slipped 1.4 per cent and Frankfurt lost 1.3 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 3.2 per cent, Hong Kong’s Hang Seng lost 1.5 per cent, and China’s Shanghai Composite lost 1.3 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 36 points up to finish at 5,173. On the futures market the SPI is up 83 points.
Australian Dollar at 7:20AM was buying 71.26 US cents, 46.09 Pence Sterling, 85.50 Yen and 63.01 Euro cents.
Due out today from the Australian Bureau of Statistics is its Business Investment survey for the June quarter. The survey measures actual spending and estimates future spending for this financial year.
Kathmandu Holdings (ASX:KMD)
has announced an immediate review of its head office structure, meaning close to 10 per cent of the company’s employees could be cut. The outdoor-wear retailer says it will closely review costs and structures in recognition of a significant reduction in profitability in FY 2015. Shares in Kathmandu closed up 3.01 per cent yesterday at $1.54.
Asaleo Care Limited (ASX:AHY)
has announced a 15.2 per cent increase in net profit to $32.5 million in the half year to June 30. The toilet paper and hygiene company says its pleased with the results given the current trading environment has been more challenging compared to the previous period. The directors declared an interim unfranked dividend of 4 cents per share for the half. Shares in Asaleo Care closed up 6.17 per cent to $1.63.
Gold has lost $13.40 to $US1,125 an ounce for the December contract on Comex.
Silver has lost 55 cents to $14.11 for September.
Copper has lost 5 cents to $2.25 a pound.
Oil has dipped 43 cents to $US38.88 a barrel for October light crude in New York.