Sydney, Nov 1, 2007 (ABN Newswire) -
Australian shares look set to start the month on a positive note and open firmer after a rally in the U.S. overnight as the Federal Reserve cut interest rates and data showing that the world's biggest economy was still on a growth track.
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http://abnnewswire.net/lnk/J6H677VKYesterday the S&P/ASX200 managed a 4 point gain to 6,754 yesterday. On the futures market the SPI200 is up 54.
Turning to currencies, overnight the Australian dollar has strengthened; at 8:45 AM the Aussie dollar is buying 93.2 US cents, on the crosses the dollar is buying 107.48 yen, 64.38 Euro cents, and 44.79 British pence.
Making news this morning;
Suncorp Metway shares were steady in trade yesterday at $20.28. The company announced after the market closed yesterday that higher credit costs were expected to impact full year profit by $10-A$15 million in the current fiscal year. Chief Executive Officer John Mulcahy told an annual shareholders meeting that while credit markets have begun to settle and the cost of debt has fallen from its peak of six weeks ago, it is unlikely to fall to where it was prior to the credit crunch. Suncorp Metway has managed to post increasing net profit results over the last 4 financial years.
Macquarie Bank shares were 0.06% higher yesterday at $84.05. In overnight news, the bank has finally won control of Techem in a deal with major shareholders worth about 1.48 billion euros after raising its offer for the German metering company. Macquarie won the deal after raising the bid to 60 euros a share, from its previous bid of 58 euros a share. It was its third approach to Techem within a year. Techem had been caught in a struggle between Macquarie, hedge funds and other investors that sought to buy the company. Macquarie Bank has posted consistently increasing net profit results over the last 4 financial years.
To international markets,
US markets rallied on news of the Federal Reserve's decision to cut interest rates; The Dow Jones Industrials Average added 138 points, the S&P500 gained 18 points and the NASDAQ improved 42 points.
European markets were all stronger; London's FTSE gained 63; Paris advanced 44, and Frankfurt was up 41.
To Asian markets, where Hong Kong's Hang Sang fell 286; Tokyo's Nikkei was up 87; and China's SSE Composite gained 58 points.
Back to the US ? Gold gained more ground overnight, ending $8.20 stronger to $796.00 for the spot contract on Comex. Silver was up 12 cents to $14.45 but copper lost 1 cent to $3.47.
And finally, oil gained $4.15 to $94.53 US a barrel for December light crude in New York.
Source: Finance News Network © 2007
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