The market is up 61. The SFE Futures were up 59 this morning.
Wall St. closed up 204 overnight. The Dow was up 211 at best and up 6 at worst. Better than expected economic numbers gave the market a boost. All ten S&P 500 major sectors closed up. Oil price fell 78c to $79.62 and Gold closed up $2 to $1089.30. The Aussie dollar was higher at 91.06c versus 90.15c yesterday morning.
Employment numbers in the US tonight. Expected to hit 9.9%, the highest level since 1982. Despite the recent 3.5% rise in 3Q GDP Q on Q in the US the feeling is that until there is some improvement in the jobs picture the FOMC and the White House will not consider tightening monetary policy or backing off on fiscal stimulus. Jobs are perhaps the most important US economic statistic at this point.
Making the news today…
- The RBA statement on monetary policy is out — It signals a rising interest rate environment in the months ahead saying the current rate, currently at 3.5%, is relatively low. The RBA also upgraded its GDP forecasts, now expects growth through 2009 to comes in at 1.75%.
- Toll Holdings (TOL) acquires United Arab Emirates-based Logistic Distribution Systems for an undisclosed amount to expand its presence in the Middle East.
- Leighton Holdings (LEI) CEO Wal King has labeled American bosses who work in Australia as overpaid and overrated. He then went on to defend his $12.5m salary.
- According to KPMG, the big four banks (ANZ, CBA, NAB and WBC) could be undertaking share buybacks because of their strong capital positions.
- Lots of press about the battle between Myer and David Jones after they both announced quarterly sales numbers yesterday. The DJS numbers were up 1.9% (bit below expectations) but with an improving trend over the last three months. They also said the first ten days of October were up 6.8%. Myer’s quarterly sales were up 2.9%.
- Graincorp completed their retail bookbuild yesterday and have started to trade again this morning. They placed the rump of their 9 for 10 entitlement offer at 650c a 4.2% discount to the last market price of 678c. That was an 85c premium to the entitlement issue price of 565c and 85c will be sent to shareholders who did not take up their rights.
- Linc Energy (LNC) up 13.5% to 159.5c after it announced potential coal resource of 1bn-1.3bn metric tons at Orroroo in SA.
- ANZ Bank (ANZ) will redeem $US350m of trust securities, cut its Tier 1 capital to around 9.3%.
- ARB Corp (ARP) has hit a fresh yearly high after providing a Market Update today.
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