The Australian share market has closed higher as investors were encouraged by US economic data showing stronger wages growth, and a positive performance from China's share market which resumed trading after a week's holiday.
The benchmark S&P/ASX 200 was up 28.6 points, or 0.5 per cent, at 5,739.3 points on Monday, with the banking, healthcare, telcos and consumer-related sectors driving gains.
ASR equity and derivatives adviser Shane Chanel said market-driving US non-farm payrolls figures released on Friday were below expectations because of the impact of recent hurricanes hitting the US.
But on a positive note, the data showed that wages growth had risen above the US Federal Reserve's target.
"I think the Australian market is getting a bit of optimism from that - finally, we might have some wage inflation," Mr Chanel said.
"More importantly, we saw the Chinese market up.
"The Chinese have been on holidays and we are seeing better volume coming out of the Chinese market."
On the local bourse, among the big banks, ANZ added 0.8 per cent to $29.70, Westpac climbed 0.7 per cent to $32.36, and National Australia Bank added 1.2 per cent to $31.71.
Commonwealth Bank was the weakest of the pack as a statement of claim was filed with the Federal Court in relation to a shareholder class action against the lender.
CBA shares closed 0.5 per cent higher at $76.71.
In the resources sector, global miner BHP Billiton dipped 0.2 per cent to $26.56, Rio Tinto eased 0.1 per cent to $69.20, and Fortescue Metals retreated 2.9 per cent to $5.02.
Gold miner Newcrest lifted 1.0 per cent to $21.77 after announcing it will increase long-term incentives for Sandeep Biswas in a bid to keep the chief executive with the company.
In the energy sector, after a fall in the oil price of more than two per cent on Friday, Woodside Petroleum dropped 0.6 per cent to $28.85, Santos descended 1.0 per cent to $4.05 and Oil Search rose 0.8 per cent to $7.21.
Among other stocks, Australian almond farmer Select Harvests soared $1.07, or 25.5 per cent, to $5.27 after it rejected a $430.6 million takeover proposal by an Abu Dhabi-based sovereign wealth fund, saying the offer undervalued the company.
Engineering group WorleyParsons was in a trading halt, having last traded at $14.24.
WorleyParsons is seeking to raise $322 million to fund the acquisition of AFW UK Oil & Gas, which provides services to the oil and gas sector in the UK.
Local hotel operator Mantra Group surged 53 cents, or 16.41 per cent, to $3.76 after Mantra received a $1.18 billion takeover proposal from global hotels player Accor.
Meanwhile, the Australian dollar is slightly higher against its US counterpart, after the greenback slipped following a report that North Korea is preparing to test a long-range missile..
The Australian dollar was worth 77.67 US cents at 1700 AEDT, up from 77.64 US cents on Friday.
ON THE ASX:
* The benchmark S&P/ASX200 was up 28.6 points, or 0.5 per cent, at 5,739.3 points at 1630 AEDT.
* The broader All Ordinaries index was up 27.7 points, or 0.48 per cent, at 5,805.1 points.
* The September SPI200 futures contract was up 23 points, or 0.4 per cent, at 5,720 points.
* National turnover was 3 billion securities traded worth $4.4 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 77.67 US cents, from 77.64 on Friday
* 87.4495 Japanese yen, from 88.69 yen
* 66.18 euro cents, from 66.36 euro cents
* 59.28 British pence, from 59.35 pence
* 109.73 NZ cents, from 109.34 cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,284.86 per fine ounce, from $US1,268.04 per fine ounce on Friday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 4.50 per cent April 2020, 1.9938pct, from 2.0008pct on Friday
* CGS 4.75pct April 2027, 2.7705pct, from 2.7638pct
Sydney Futures Exchange prices:
* December 2017 10-year bond futures contract at 97.15 (implying a yield of 2.85pct), from 97.16 (2.84pct) on Friday
* December 2017 3-year bond futures contract at 97.86 (2.14pct), unchanged
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)
Wall Street fell from record levels on Monday as gains in Microsoft (MSFT.O) and other technology stocks failed to offset a drop in General Electric (GE.N) and a slide in healthcare stocks.
Based on the latest available data, the Dow Jones Industrial Average .DJI fell 12.6 points, or 0.06 percent, to 22,761.07, the S&P 500 .SPX lost 4.6 points, or 0.18 percent, to 2,544.73 and the Nasdaq Composite .IXIC dropped 10.45 points, or 0.16 percent, to 6,579.73.
World shares edged lower on Monday after key German and U.S. indexes hit fresh record peaks, while oil prices rose slightly on comments by OPEC’s secretary general that indicated further possible cuts in crude production.
The dollar slipped on Monday from a 10-week peak against a basket of currencies as the euro strengthened and stocks on Wall Street faded from their initial highs.
The U.S. dollar rose against the Japanese yen but was lower against the euro and a basket of key currencies after hovering near a 10-week high.
German stocks and the euro were buoyed by data showing Germany’s industrial output posted its biggest monthly increase in more than six years in August.
Comments from European Central Bank Executive Board member Sabine Lautenschlaeger calling for the ECB to roll back asset purchases in 2018 also boosted the single currency.
Germany's DAX .GDAXI index closed at an all-time high while Chinese stocks .CSI300 hit 21-month highs after a week-long break in a delayed reaction to a targeted easing by China's central bank announced on Sept. 30.
Equity markets around the world have been marching higher in a wave of optimism over global growth.
In Europe, Spain’s blue-cap IBEX rose to its highest in a week on hopes that Catalonia would take a step back this week from a unilateral declaration of independence from Spain.
Catalonia’s secessionist leader faced increased pressure to abandon plans to declare the region independent from Spain, with France and Germany expressing support for the country’s unity.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.20 percent to close at 1,533.82, while the DAX rose 0.16 percent.
MSCI’s gauge of stock indexes in 47 markets around the globe .MIWD00000PUS was slightly lower after coming within a whisker of an intraday high. Stocks on Wall Street fell, though the Dow and Nasdaq earlier set intraday highs.
The three main Wall Street indexes, along with the MSCI global benchmark, hit closing highs every day last week except for Friday. The upcoming earnings season will justify the lofty valuations for U.S. stocks, analysts said.
“The relatively high valuation, where the market is trading 17 to 18 times earnings, is merited by a very low interest rate environment,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
“We are not in danger yet if you keep your eye on rates.”
Earnings at S&P 500 companies are expected to have gained 4.9 percent in the third quarter, according to Thomson Reuters data, down from double-digit growth in the first two quarters of this year but still healthy.
Secretary-General Mohammad Barkindo of the Organization of Petroleum Exporting Countries said on Sunday that talks were ongoing to extend a production agreement beyond March 2018 and that more oil-producing nations may join the pact.
Brent LCOcv1 rose 17 cents to settle at $55.79 per barrel, while U.S. crude CLcv1 settled at $49.58, up 29 cents on the day.
The dollar index - which measures the greenback against a basket of six other major currencies - on Friday hit 94.267 .DXY, its highest since July 20 following stronger-than-expected average hourly earnings last month.
The dollar index .DXY fell 0.14 percent, with the euro EUR= up 0.14 percent to $1.1749. The Japanese yen strengthened 0.04 percent versus the greenback at 112.60 per dollar.
The U.S. bond market was closed for the Columbus Day holiday.
U.S. gold futures GCv1 for December delivery settled up 0.8 percent at $1,285.
Source: Netwealth Morning Business Roundup
Breakky today is Bircher Muesli with Berries and Pepita Seeds. There's a choice of kiwi fruit or mango juice.
Happy Trading and only one stock code mention per session (per member, within reason!). Maybe we should start a new thread every ten minutes to bypass this rule. Any volunteers for openers?
Last edited by Madmin:
added red text to clarify10/10/17
