Friday pick me-up: ASX futures suggest rebound

Market Reports

by Jessica Ellerm


Despite a lacklustre day on Wall Street the Australian share market looks set to open higher, as the local market looks to rebound from yesterday’s sell-off. U.S. stocks closed lower on Thursday, despite continued good news on the corporate earnings front and positive economic data. Next week the Federal Reserve will meet, where it is widely expected they will leave rates unchanged but potentially signal their intentions to lift rates in December.

US economic news

Initial jobless claims for the week ending October 22nd fell 3000 to 258,000. It marks the 86th straight week initial claims have been below 300,000. Pending home sales rose 1.5 percent in September, beating market estimates of a 1.2 percent rise.

Markets


Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 18,170, the S&P 500 fell 0.3 per cent to close at 2,133 and the NASDAQ dropped 0.7 per cent to close at 5,216.

European markets closed mixed: London’s FTSE gained 0.4 per cent, Paris was flat and Frankfurt added 0.1 per cent.

Asian markets closed lower: Tokyo’s Nikkei fell 0.3 per cent, Hong Kong’s Hang Seng slipped 0.8 per cent, and China’s Shanghai Composite dropped 0.1 per cent.

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 64 points down to finish at 5,296. On the futures market the SPI is 28 points up.

Currencies

The Australian Dollar at 7:20AM was buying $US75.88 cents, 62.33 Pence Sterling, 79.83 Yen and 69.64 Euro cents.

Economic News 

Due out today from Housing Industry Australia is new home sales data. The Australian Bureau of Statistics will also release the latest year on year and quarter on quarter producer price index figures.

Company News

OceanaGold Corporation (ASX:OGC) has released its Q3 results, announcing a net profit of $30.7 million. During the quarter the company produced nearly 89,000 ounces of gold, bringing its year to date production to nearly 315,000. The company has indicated it is on track to achieve 2016 production and cost guidance. Shares in Oceanagold closed 3.64 per cent lower yesterday at $3.97.

Bradken Limited (ASX:BKN) has announced the Federal Trade Commission in the U.S. has granted an early termination of the waiting period with respect to the proposed acquisition of the business by Hitachi Construction Machinery. Bradken has indicated this completes the anti-trust regulatory review of the takeover transaction in the states. Shares in Bradken Limited closed steady yesterday at $3.22.

Ex-dividends

2 companies are going ex-dividend today: Aurora Dividend Income Trust (ASX:AOD) is paying 0.36 cents 94.44 percent franked and Premier Investments Limited (ASX:PMV) is paying 25 cents fully franked.

Commodities

Gold has gained $3.40 to $US1,270 an ounce for the December contract on Comex.
Silver has added $0.01 to $17.64 for December.
Copper has risen $0.02 to $2.16 a pound for December.
Oil has gained $0.44 to $US49.62 a barrel for December light crude in New York.
 

Jessica Ellerm

Finance News Network
Jessica joined FNN in April 2016 and presents the Australian Share Market Outlook, and reports on the morning's leading business stories. Alongside FNN Jessica is a fintech industry commentator, writing for her own blog and a number of international online publications.