The Day that Stops the Nation - Tuesday, page-8

Outlook: Aus shares set to open higher November 03, 2015 09:00 AM


Following positive leads from Wall Street, the Australian share market looks set to open in the black this morning.  US stocks rallied overnight as investors turned their attention to a spate of M&A activity, and shrugged off weaker than expected manufacturing data. In terms of the local share market today, all eyes will be on the RBA and its interest rate decision at 2.30pm this afternoon, just half an hour before the race that stops the nation goes ahead.

US economic news

The ISM Manufacturing index has fallen to its lowest level since May 2013. Data from the Institute for Supply Management showed its manufacturing index fell slightly to 50.1 per cent last month from 50.2 per cent. Readings over 50 per cent indicate expansionary territory.

Global Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.94 per cent to close at 17,829, the S&P 500 added 1.0 per cent to close at 2,104 and the NASDAQ gained 1.5 per cent to close at 5,127.

European markets closed higher: London’s FTSE gained 0.01 per cent, Paris added 0.4 per cent and Frankfurt added 0.9 per cent.

Asian markets closed lower: Tokyo’s Nikkei lost 2.1 per cent, Hong Kong’s Hang Seng retreated 1.2 per cent, and China’s Shanghai Composite slipped 1.7 per cent.

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 74 points lower to finish at 5,166. On the futures market the SPI is up 62 points.

Currencies

The Australian Dollar at 8:20AM was buying 71.42 US cents, 46.34 Pence Sterling, 86.24 Yen and 64.87 Euro cents.

Economic news

The Reserve Bank of Australia will hold its November board meeting. The central bank has traditionally made a rate cut on Melbourne Cup day, but economists are unsure which way the bank will lean this month. Interest rates still remain at a record low of 2 per cent.