News: Outlook: ASX eyes Wall Street gains

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With positive leads from Wall Street, the SPI is pointing to a positive start for the local market as it grapples with a week spent in negative territory. 

 

Energy stocks led Wall street higher overnight as the oil price recovered. US inflation was shown to have risen in October which is a further sign of the economy’s health and increases pressure on the Fed to lift interest rates.

 

Meanwhile in Europe a poor read on manufacturing and services activity points towards weak growth for the remainder of the year.

 

Global figures

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close at 17,719, the S&P 500 added 0.2 per cent to close at 2,053 and the NASDAQ is up 0.6 per cent to close at 4,702.

 

European markets closed mixed: London’s FTSE lost 0.3 per cent, Paris is down 0.8 per cent and Frankfurt gained 0.1 per cent.

 

Asian markets closed mixed: Tokyo’s Nikkei added 0.07 per cent, Hong Kong’s Hang Seng lost 0.1 per cent, and China’s Shanghai Composite is up 0.07 per cent.

 

The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 53 points down to finish at 5,316. On the futures market the SPI is 11 points up. 

 

Turning to currencies and the Australian Dollar at 8:35AM was buying $US0.8628 cents, 54.99 Pence Sterling, 101.88 Yen and 68.81 Euro cents.

 

Company news

 

Centuria Capital Limited (ASX:CNI) will sell its Citilink Business Centre in Brisbane for $62 million. The investment manager says the property at 153 Campbell Street was held in Centuria Office Fund No 2 after being acquired in 2004 for $39.4 million and the sale is inline with the fund’s exit strategy. Shares in Centuria Capital are trading flat at $0.96.

 

Cardno Limited (ASX:CDD) has forecast net profit of between $27 million and $31 million in the six months to the end of 2014. The company says the profit figure is lower than in previous half year periods due mainly to difficult conditions in Australia related to capital investment in mining as well as in oil and gas. CEO Michael Renshaw suggests the second half of FY15 will be stronger than the first half. Shares in Cardno closed 4.56 per cent lower yesterday at $4.81.

 

Commodities

Gold is down $3.00 to $US1,191 an ounce for the December contract on Comex.
Silver is down $0.16 to $16.14 for December.
Copper is down $0.03 at $3.02 a pound.
Oil is up $1.00 at US$75.58 a barrel for December light crude in New York.

 

Ex-dividends

1 company is going ex-dividend today. AusNet Services (ASX:AST) is paying 4.18c, 52.63% franked.