Outlook: ASX set to follow global stocks higher

Market Reports


Aussie shares could follow global stocks higher after they rose on Wednesday ahead of the US Federal Reserve decision on whether to raise interest rates for the first time in nearly ten years. 
 
Oil prices took a jump of nearly four per cent while the Aussie dollar made gains against a falling greenback. 
 
US economic news

US Consumer Price Index fell for the first time in seven months, down 0.1 per cent in August with subdued domestic inflation seen as a critical case against raising interest rates when the Fed meets. The interest rate decision is due to be released around 4am Friday morning local time.  
 
Markets

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.8 per cent to close at 16,740, the S&P 500 added 0.9 per cent to close at 1,995 and the NASDAQ advanced 0.6 per cent to close at 4,889.
 
European markets were also higher: London’s FTSE rose 1.5 per cent, Paris gained 1.7 per cent and Frankfurt was up 0.4 per cent.
 
Asian markets closed stronger: Tokyo’s Nikkei added 0.8 per cent, Hong Kong’s Hang Seng rose 2.4 per cent, and China’s Shanghai Composite gained nearly 5 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 80 points up to finish at 5,099. On the futures market the SPI is pointing 35 points higher. 
 
Currencies

The Australian Dollar at 7:20AM was buying 71.95 US cents, 46.45 Pence Sterling, 86.76 Yen and 63.74 Euro cents.
 
Economic news

Due out today from the Australian Bureau of Statistics are the latest detailed employment figures. 
 
Company news
 
Panoramic Resources Limited (ASX:PAN) says it’s sale of the Mt Henry joint venture with Matsa Resources to Metals X has completed. Panoramic will receive 70 per cent of 22 million ordinary shares in Metals X for the deal which has now received full regulatory approval. Shares in Panoramic last traded 1.61 per cent lower at $0.305. 
 
Tatts Group Limited (ASX:TTS) says they have agreed terms with CEO and Managing Director Robbie Cooke for Mr Cooke stay on for a further three years. Mr Cooke will receive $2 million per annum with a performance based incentive of up to an extra $2 million to be paid in cash and equity. Shares in Tatts Group last traded 2.01 per cent higher at $3.55.
 

Ex-divs

Four companies are going ex-dividend today: BlueScope Steel Limited (ASX:BSL), Ellerston Global (ASX:EGI), PMP Limited (ASX:PMP) and Southern Cross Electrical Engineers. 
 

Commodities

Gold has added $15.80 to $US1,118 an ounce for the December contract on Comex. Silver has lifted 58 cents to $14.90 for December. Copper has added 3 cents to $2.45 a pound. Oil is up $2.51 to US$47.51 a barrel for October light crude in New York.

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