Wall Street makes solid gains: Aus shares to start week on positive note

Market Reports

by Anna Napoli

Australian shares are set to open higher this morning, following strong leads from US markets. Wall Street rose solidly on Friday after reports of progress in trade negotiations between the US and China. There were broad-based gains with industrials doing best. But, shares of Netflix fell by 4 per cent on the back of disappointing guidance for the first quarter of 2019.

US economic news

The Federal Reserve said industrial production rose by 0.3 per cent in December (forecast +0.2 per cent) to be up 4 per cent on the year. The results were boosted by a surge in the production of motor vehicles and a range of other goods
Wall St makes solid gains: Aus shares to start week on positive note

Australian economic news

We can expect Lending Finance figures from the ABS today, on Wednesday Department of Jobs and Small Business releases Skilled Vacancies data for December and on Thursday the December jobs report is due.

Markets

Wall Street closed up on Friday: The Dow Jones Industrial Average gained 1.4 per cent to close at 24,706, the S&P 500 added 1.3 per cent to close at 2,671 and the NASDAQ gained 1 per cent to close at 7157.

European markets closed higher: London’s FTSE gained 2 per cent, Paris rose 1.7 per cent and Frankfurt increased 2.6 per cent.

Asian markets closed also higher: Tokyo’s Nikkei gained 1.3 per cent, Hong Kong’s Hang Seng increased by 1.3 per cent, and China’s Shanghai Composite rose 1.4 per cent.

Taking all of this into equation, the SPI futures are pointing to a rise of 43 points.On Friday the Australian share market closed 30 points higher 5,880.

Company news

2018 was a record year for coal miner Yancoal (ASX:YAL) with 50 million tonnes of saleable coal production, up 59 per cent on the year prior. Quarterly sales volumes also saw a rise of 4 per cent on the prior year. The company says consistently strong production at each of its tier one operations has driven an exceptional end of year result for the group. Shares Yancoal (ASX:YAL) closed 0.6 per cent higher at $3.36.

Ex-Dividends

Turners Automotive Group (ASX:TRA) is paying $3.75 unfranked.
US Masters Residential Property Fund Unit (ASX:URF) is paying 5 cents unfranked.

Currencies

One Australian Dollar at 7:45AM was buying 71.76 US cents, 55.77 Pence Sterling, 78.67 Yen and 63.13 Euro cents.

Commodities 

Iron Ore futures suggest a 5.1 per cent gain.
Gold has shed $9.70 to US$1283 an ounce. 
Silver has lost $0.14 to US$15.40 an ounce. 
Oil has gained $1.68 to US$54.04 a barrel.