US continues post-Fed rally: ASX to gain on open

Market Reports

by Jessica Ellerm

Following positive leads, the Australian share market looks set to open higher. US markets continued to rebound on Thursday as the effects of the Fed’s decision to leave interest rates unchanged continued to permeate through the market. The Nasdaq hit an all time high on Thursday while oil also continued to push higher, breaking through the US$46 dollar mark.
US economic news

Last week’s initial jobless claims dropped by 8000 to their lowest number in two months, coming in at 252,000. On the housing front, sales of previously owned homes declined in August by 0.9% however home prices did pick up in July, rising 0.5% for the month.

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 18,392, the S&P 500 added 0.7 per cent to close at 2,177 and the NASDAQ rose 0.8 per cent to close at 5,340.
European markets closed up: London’s FTSE lifted 1.1 per cent, Paris and Frankfurt both jumped 2.3 per cent 
Asian markets closed up : Hong Kong’s Hang Seng gained 0.4 per cent, and China’s Shanghai Composite lifted 0.5 per cent. Tokyo’s Nikkei was closed. 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 35 points up to finish at 5,374.On the futures market the SPI is 27 points up. 

The Australian Dollar at 7:20AM was buying $US76.44 cents, 58.47 Pence Sterling, 77.05 Yen and 68.22 Euro cents.
Company news
Retail Food Group (ASX:RFG) has announced it has completed due diligence on its acquisition of Hudson Pacific Corporation and settlement has now completed. The acquisition marks the company’s first formal entry into full service food and beverage operations, complementing its existing procurement, warehousing, distribution and manufacturing business lines. Shares in Retail Food Group Limited closed 2.27 per cent up yesterday at $7.20.
Metals X Limited (ASX:MLX) has announced it has accepted a legal settlement from Tanami Gold NL. The settlement comes after legal proceedings kicked off in April surrounding the contested acquisition of the Central Tanami Project by Metals X. Shares in Metals X Limited closed 6.16 per cent up yesterday at $1.47.

4 companies are going ex-dividend today. Centrepoint Alliance (ASX:CAF)  will pay 1.2 cents fully franked, CI Resources Limited (ASX:CII) will pay 8 cents fully franked, Gale Pacific Limited  (ASX:GAP) will pay 1 cent unfranked and Saunders International Limited (ASX:SND) will pay 2 cents fully franked. 

Gold has added $9.30 to $US1,341 an ounce for the December contract on Comex.
Silver has jumped $0.33 to $20.10 for December.
Copper has risen $0.03 to $2.19 a pound for December.
Oil has gained $0.98 $US46.32 a barrel for November light crude in New York.

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