Aussie market looks set to open higher later this morning, following strong gains on Wall Street overnight and rises in commodity prices.
The June SPI futures contract is up 38 points, at 5155.
US stocks rose for the second consecutive session ahead of the Federal Reserve’s decision on whether to raise its interest rate for the first time in nine years.
Crude prices also rallied after a US petroleum supply report showed lower inventories and oil production.
Locally, the Reserve Bank releases its quarterly bulletin containing its latest research.
In equities news, Oroton releases its full year results.
– SPI futures up 38pts at 5155
– AUD at 71.94 US cents (it hit a high of 72.00 cents), 86.83 Japanese yen, 63.81 Euro cents and 46.47 British pence
– On Wall St, S&P 500 +0.9%, Dow +0.8%, Nasdaq +0.6%
– In Europe, Stoxx 50 +1.4%, FTSE +1.5%, CAC +1.7%, DAX 0.4%
– Spot gold up $US14.22 or 1.3% to $US1119.57 an ounce
– Iron ore slips 0.1% to $US57.21 per tonne
– Brent crude up $US2.11 or 4.4% to $US49.86 a barrel
– US oil up $US2.60 or 5.8% to $US47.19 a barrel
What’s on today:
Reserve bank bulletin (quarterly publication); Swiss National Bank quarterly policy assessment (policy rates are expected to stay unchanged); US Federal Reserve FOMC meeting (second day, statement to be released about 4am AEDT on Friday), US August housing starts.
Stocks in focus:
Sponsor broker Macquarie Capital has valued IPO hopeful Link Group at 14.2 to 16.8 times forecast 2016 earnings on an enterprise value basis.
UBS has a ‘neutral’ rating on Oil Search (OSH) and a $8.25 target price The Swiss investment bank said the rejection of Woodside Petroleum’s conditional proposal to buy the company was ‘not surprising’. “The ball is now back in WPL’s court.”
Deutsche Bank has a ‘buy’ recommendation on Independence Group (IGO) and a $5.10 target price.
Trading ex dividend today: BlueScope Steel, Capital Mining, Continuation Investments, Ellerston Global Investment, Malabar Coal, PMP, Southern Cross Electrical.