Market set for gains on China, US economic news – Daily Outlook
Australian Share Market Daily Outlook
September 13, 2010 – 8:16am
The Australian share market is expected to rise today at opening in the wake of gains on Wall Street and strong Chinese economic data released over the weekend.
Saturday morning trade on the Sydney Futures Exchange points to likely gains on the share market at opening, with the September share price index contract trading 12 points higher at 4577.
Quick facts
- The SPI was up 12 points to 4577.
- US, the S&P500 rose 5.37 points on Friday to 1109.55
- Europe, the FTSE 100 rose 7.48 points on Friday to 5501.64
- Gold fell $US4.40 an ounce to $US1,246.50
- Oil was up $US2.20 a barrel to $US76.45
- The Australian dollar was buying 92.98 US cents
In Australian trade on Friday, the share market closed lower, dragged down by mining and energy stocks. The benchmark S&P/ASX200 index finished down 21.9 points, or 0.48%, to 4560.3, while the broader All Ordinaries index fell 20.6 points, or 0.45%, to 4600.7.
In news that could propel local stocks, China reported on Saturday that consumer inflation rose at the fastest pace in nearly two years in August, the 10th consecutive month the consumer price index, a key measure of inflation, had risen. Other key data released by the National Bureau of Statistics showed the world’s second largest economy remained robust in August, suggesting the Asian giant was not slowing as fast as many had feared.
In overseas markets US stocks edged higher on Friday, extending their rally that began nearly two weeks ago. The latest report on Friday said wholesale inventories increased in July, a sign of confidence that retail sales will rise.
The Dow Jones Industrial Average climbed 47.53 points, or 0.5%, to end the week at 10,462.77. The Standard & Poor’s 500 index closed up 5.37 points, or 0.5%, to 1109.55. The Nasdaq composite index rose 6.28 points, or 0.3%, to 2242.48.
European stock markets closed little changed on Friday after dipping earlier in the session over fresh concerns about the state of Europe’s banking sector. German banking giant Deutsche Bank is reportedly considering raising new cash through a stock sale.
The London FTSE 100 index rose 7.48 points, or 0.14%, to close the week at 5501.64. The German DAX fell 6.75 points, or 0.11%, to 6214.77. The French CAC 40 rose 3.67 points, or 0.10%, to 3725.82.