US markets steam ahead: Aus shares to open higher

Market Reports

by Jessica Amir

The Australian share market looks set bounce back at the open, following strong leads from US markets. The Dow Jones posted its best day for 2017 on the back of better than expected jobs data.

The index jumped about 180 points with Goldman Sachs adding the most gains, while the tech heavy Nasdaq closed at a new record high. The S&P 500 also pushed higher, with financial stocks leading the advancers after they lapped up that stronger employment data.

All sectors on Wall Street closed in the green, with the exception of the Materials space, which fell after China’s central bank raised interest rates for the first time in 6 years.

US economic news

Payrolls data strengthened, with the US economy adding 227,000 jobs in January, beating estimates of 175,000.

The unemployment rate edged higher to 4.8%, slightly higher than analysts' expectations, while hourly earnings increased.

New orders for US made goods increased more than expected in December, with US Factory Goods orders increasing 1.3%. Rising strongly against the 2.3% decline in November.

Total shipments of manufactured goods rose to their strongest level since Dec 2010. 

To local economic news

Today, we can expect ABS retail sales numbers for December, with economists tipping a rise of 0.3% growth.
ANZ will report on Job Ads for January.

On Tuesday, the RBA will make a decision about cash rates, with predictions the bank will hold the rate at the record low of 1.5%. 

On Thursday, RBA Governor Philip Lowe will give the Reserve Bank’s speech.

On Friday we can expect the Statement on Monetary Policy for February, with updated growth and inflation forecasts.
We can also expect ABS figures on housing finance (new loan numbers) for December.

Markets

Wall Street closed up on Friday: The Dow Jones Industrial Average gained 0.94 per cent to close at 20,071, the S&P 500 added 0.73 per cent to close at 2,297 and the NASDAQ advanced 0.54 per cent to close at 5,667.

European markets closed higher: London’s FTSE gained 0.67 per cent, Paris added 0.65 per cent and Frankfurt rose 0.2 per cent.

Asian markets closed mixed, Tokyo’s Nikkei added 0.02 per cent, Hong Kong’s Hang Seng fell 0.24per cent, and China’s Shanghai Composite also fell 0.6 per cent.

The Australian share market closed lower on Friday. The S&P/ASX 200 index closed 24 points down to finish at 5,622, over the week the index lost 92 points.

On the futures market the SPI is up 24 points.

Company news

Atlas Iron Limited (ASX:AGO) has announced ratings company, Moody's, has upgraded its credit rating to 'B3'. The iron ore exploer, developer and producer had its rating lifted from 'Caa3'. Atlas Iron says it was because the miner capitalised on higher iron ore prices and used its increased cash flows to improve debt levels and its balance sheet. Shares in Atlas Iron Limited (ASX:AGO) fell 6.82% on Friday to 4 cents.

Currencies

The Australian Dollar at 7:00am was buying $US0.7673 US cents, 61.40 Pence Sterling, 86.28 Yen and 71.06 Euro cents.

Commodities

Gold has gained $5.30 to $US1,222 an ounce. 
Silver also gained 9 cents to $17.52.
Oil has lifted 9 cents to $US53.85 a barrel.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.