Global equities surge: Aus shares to follow

Market Reports

by David Chau

The Australian share market is set to open higher this morning.

It was a sea of green yesterday, as equity markets around the world rallied, recovering from Monday's disappointing sessions.

Wall Street finished in positive territory, with the Nasdaq in particular posted an almost 1% gain. This was after Netflix surpassed earnings expectations, causing its share price to surge by almost 20%.

Within the S&P 500, 52 companies have reported their earnings, and 83% of them have beaten their bottom-line estimates.

US economic news

In September, the Consumer Price Index had its biggest increase in five months on the back of rising rents and gasoline prices. The CPI rose by 0.3 percent, in line with expectations. However, core CPI rose just 0.1 percent, which was below expectations.


Wall Street closed higher overnight: The Dow Jones gained 0.4 per cent to close at 18,162, the S&P 500 was up 0.6 per cent to close at 2,140 and the NASDAQ surged 0.9 per cent to close at 5,244.

European markets also finished higher: London’s FTSE was up 0.8%, Paris added 1.3 per cent and Frankfurt rose 1.2 per cent.

Asian markets closed higher too: Nikkei gained 0.4 per cent, the Hang Seng added 1.6 per cent, and the Shanghai Composite was up 1.4 per cent.

The Australian share market closed higher yesterday: The ASX 200 closed 22 points up to finish at 5,411. On the futures market the SPI is up 13 points.


The Australian Dollar at 7:30AM was buying $US76.64 cents, 62.35 Pence, 79.59 Yen and 69.82 Euro cents.

Company news

The GDI Property Group (ASX:GDI) has exchanged contracts to sell its building, at 80 George St, Parramatta, for $51.9 million. GDI bought this property in June 2015 for $38.7 million. The company says the sale price reflects a 34% gross premium to the acquisition price, and settlement is scheduled for late January 2017. Shares in GDI closed 0.51% lower at 97 cents.

The Anti-Dumping Commission has released a preliminary determination in relation to the a case lodged by Capral Aluminium (ASX:CAA). Capral alleges that manufacturers from Vietnam and Malaysia, exported aluminum into Australia, at prices which were far lower than Australian prices, thereby causing “material injury” to the local industry. The company says the Commission has now imposed preliminary dumping margins ranging from 0% to 34.2%, with the medium rate being 13.2%. A final determination is expected around the first-quarter of 2017. Shares in Capral closed 5.71% higher at 18.5 cents.


Two companies are going ex-dividend today.

Homeloans Ltd (ASX:HOM) will pay a dividend of 2 cents per share, and Naos Emerging Opportunities Company (ASX:NCC) will pay 3.5 cents per share.  Both dividends are fully franked.


Gold has gained $6.40 to $US1,263 an ounce.
Silver has gained 15 cents to $17.63.
Copper is steady at $2.11 a pound.
Oil is up $0.34 to US$50.71 per barrel. 

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