The Australian share market is set to open higher following record highs overnight on the S&P 500 and Nasdaq Composite indexes. The highs came as China promised to tighten intellectual property rules in the country and the market saw a slew of merger and acquisition activity. Louis Vuitton’s parent company, French luxury goods multinational LVMH, has inked a deal worth US$16.2 billion to purchase US jeweller Tiffany & Co (NYSE:TIF). EBay (NASDAQ:EBAY) announced plans to sell StubHub to Swiss ticket vendor Viagogo for US$4.05 billion. Uber (NYSE:UBER) has 21 days to file an appeal after London's transit authority refused to renew its operating licence due to a string of safety concerns.
Local economic news
Reserve Bank Governor Philip Lowe will give a speech at the Australian Business Economists annual dinner.
Wall Street closed higher yesterday: The Dow Jones Industrial Average closed 0.7 per cent higher at 28,066, the S&P 500 gained 0.8 per cent to 3134 and the NASDAQ jumped 1.3 per cent to 8632.
European markets closed higher: London’s FTSE gained almost 1 per cent, Paris added 0.5 per cent and Frankfurt closed 0.6 per cent higher.
Asian markets closed higher: Tokyo’s Nikkei added 0.8 per cent, Hong Kong’s Hang Seng gained 1.5 per cent and China’s Shanghai Composite rose 0.7 per cent.
Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent gain.
Yesterday, the Australian share market closed 22 points or 0.3 per cent higher at 6731.
Major construction company, Fletcher Building (ASX:FBU) has confirmed that the loss and damage resulting from the fire at the New Zealand International Convention Centre in October will likely be covered under its Contract Works insurance policy. In addition, its Third Party Liability insurance policy is expected to respond where legal liability exists and cases are being reviewed on a claim-by-claim basis. Fletcher Building will provide a further update at its half yearly results announcement next February on how the fire affected the project’s delivery timeline, costs, cash-flows and construction provisions. Shares in Fletcher Building (ASX:FBU) closed 0.8 per cent lower at $4.95 yesterday.
One Australian Dollar at 8:20 AM was buying 67.75 US cents, 52.53 Pence Sterling, 73.82 Yen and 61.56 Euro cents.
Iron Ore has gained 3.2 per cent to US$90.92.
Iron Ore futures however suggest a 0.3 per cent fall.
Gold has dropped $8.70 to US$1462 an ounce.
Silver slid $0.13 to US$17.02 an ounce.
Oil has added $0.22 to US$57.99 a barrel.