US shares climb on back of tech led rally - local shares to open higher


Australian shares are poised open higher following upbeat overseas leads, with easing restrictions in Melbourne adding to positive sentiment. On Wall Street shares ended the week higher amid progress on a more-than $US2 trillion stimulus package that could be voted on this week. Friday was the best day for the major averages since September 9. The S&P tech sector jumped 2.4 per cent and the likes of Amazon, Apple Netflix and Microsoft all climbed over 2 per cent. Meanwhile Boeing shares surged 6.8 per cent on reports the US aviation regulator plans to test-fly the grounded 737 Max plane. And, Global oil prices edged lower on Friday on concerns that virus lockdown measures will stifle crude demand.

Economic news

Today the Australian Bureau of Statistics (ABS) releases experimental estimates of the recent national accounts, covering schools and universities. On Tuesday, weekly data on credit and debit card spending from the Commonwealth Bank (CBA) will be issued alongside the weekly read of consumer sentiment from ANZ-Roy Morgan. On Wednesday, the ABS releases two publications: Building approvals and Engineering construction. Also on Wednesday, the Reserve Bank releases the Private sector credit (or lending) data for August. Aussies are in no mood to borrow, unless to buy or build homes. Credit was probably down 0.1 per cent in August. On Thursday, CoreLogic releases its Home Value report. Also on Thursday, Ai-Group and IHS Markit release the results of the separate surveys of purchasing managers in the manufacturing sector. Also from the ABS on Thursday are quarterly job vacancies data for August and provisional mortality data for the six months to June. And on Friday, the ABS releases the final estimates for retail spending for August.

Markets

To the figures from around the globe: Wall Street closed higher on Friday: The Dow Jones Industrial Average gained 1.3 per cent to close at 27,174, the S&P 500 added 1.6 per cent to close at 3298 and the NASDAQ closed 2.3 per cent higher at 10,914.

European markets closed mixed: London’s FTSE added 0.3 per cent, Paris fell 0.7 per cent and Frankfurt closed 1.1 per cent lower.

Asian markets closed mixed, Nikkei added 0.5 per cent, Hong Kong’s Hang Seng fell 0.3 per cent and China’s Shanghai Composite closed 0.1 per cent lower.

Taking all of this into equation, the SPI futures are pointing to a 0.4 per cent gain.

On Friday, the Australian share market gained 89 points to close at 5965.

Company news

a2 Milk says it has been experiencing disruption to its corporate reseller channel which is impacting its September sales and it is currently anticipated that this will continue for the remainder of the first half of FY21. The company says performance in all other areas of its business is strong, including the liquid milk businesses in Australia and the USA as well and its local China business is performing strongly. Shares in a2 Milk (ASX:A2M)  closed 2.51 per cent higher at $17.16 on Friday.

Ex-Div

Imdex Limited (ASX:IMD) is paying 0.7 cents fully franked
NRW Holdings Limited (ASX:NWH) is paying 4 cents fully franked

Currencies

One Australian Dollar at 7:45 AM was buying 70.35 US cents, 55.14 Pence Sterling, 74.31 Yen and 60.54 Euro cents.

Commodities

Iron Ore has gained 0.5 per cent to US$115.21.
Iron Ore futures suggest a 1.1 per cent gain.
Gold has lost $10.60 to US$1866 an ounce.
Silver was down $0.10 cents to US$23.09 an ounce.
Oil has lost $0.06 to US$40.25 a barrel.