Wall St rises on earnings and trade optimism: Aus shares to open higher

Market Reports

by Anna Napoli

The local sharemarket is poised to open higher following a positive session in the US on Friday. Stocks rose on Wall St on Friday as investors were buoyed by strong earnings results from Intel and signs of progress in US-China trade talks.

Oil prices were also higher on Friday posting the strongest weekly gains in over a month on the back of renewed optimism over a US-China trade deal.
US economic news

Consumer sentiment fell slightly in October to 95.5 That’s down from a preliminary reading of 96, but above a final September print of 93.2.

Looking ahead the Federal Reserve meets this Thursday and investors are pricing in a rate cut of 25 basis points.

Local economic news

Today CommSec releases its State of the States report, on Tuesday the Reserve Bank Governor Philip Lowe gives a speech. On Wednesday the Consumer Price Index (CPI) for the September quarter is due out. On Thursday, there are three indicators to spark investor interest: international trade prices (exports and imports); building approvals; and private sector credit (or loans outstanding. Finally on Friday, CoreLogic issues the Home Value Index for October. 

Markets

Wall Street closed higher on Friday: The Dow Jones Industrial Average added 0.6 per cent to close at 26,958, the S&P 500 gained 0.4 per cent to close at 3023 and the NASDAQ rose 0.7 per cent to 8243.

European markets closed mixed on Friday: London’s FTE fell 0.1 per cent, Paris gained 0.7 per cent and Frankfurt added 0.2 per cent.

Asian markets closed mixed on Friday: Tokyo’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng lost 0.5 per cent and China’s Shanghai Composite gained 0.5 per cent.

Taking all of this into equation, the SPI futures are pointing to 0.4 per cent gain. On Friday, the Australian share market closed 46 points (0.7 per cent) higher at 6739.

Company news

Blackmores (ASX:BKL) has announced the completion of the acquisition of Catalent Australia’s world-class manufacturing facility in Braeside, Victoria. This significant milestone represents Blackmores’ expansion into soft-gel and tablet manufacturing. The final acquisition cost includes a completion payment of $33 million paid on Friday and a capital payment of approximately $20 million expected to be paid in early 2020. Blackmores says the facility will support the Group’s strong focus on growth and product innovation, with increased research and development capabilities, and provide greater control over production. Shares in Blackmores (ASX:BKL) closed 0.9 per cent lower at $87.01 on Friday.

Ex-Dividends

Autosports Group Ltd (ASX:ASG) is paying 3 cents fully franked

Currencies

One Australian Dollar at 7:45 AM was buying 68.24 US cents, 53.28 Pence Sterling, 74.19 Yen and 61.57 Euro cents.

Commodities

Iron Ore has added 0.7 per cent to US$87.98.
Iron Ore futures suggest a 2.2 per cent gain.
Gold has gained $0.60 to US$1505 an ounce.
Silver was up 12 cents to US$17.93 an ounce.
Oil has risen $0.43 to US$56.66 a barrel.