Overseas Market Report – U.S. Stocks Follow Global Markets Higher
U.S. stocks rose on Monday after markets in Asia and Europe rallied. The ISM Services Index, which measures the strength of the U.S. nonmanufacturing economy, slowed to 56.9 in September from 59 in August. Economists had expected a more modest decline to 58. At the close the Dow and the S&P 500 were both up around 1.8%, while the NASDAQ was 1.6% higher.
For Australian ADRs listed on the NYSE, BHP Billiton added 64 cents (1.94%) to $33.70, ResMed gained $1.00 (1.94%) to $52.66, Telstra Corporation lifted 49 cents (2.46%) to $20.40, Spark New Zealand rose 7 cents (0.72%) to $9.78 and Westpac increased 36 cents (1.68%) to $21.74. At 7:45 AM (AEST), the 10-year Treasury note yield was 2.06% and the 5-year yield was 1.34%.
Twitter (TWTR) confirmed that co-founder Jack Dorsey, who has been acting as interim CEO for the firm, will become the permanent chief. Dorsey will continue to serve as the CEO of payments firm Square. The share price has been volatile in recent days as rumours that Dorsey was taking the role permanently circled.
European markets were sharply higher. The FTSE 100 lifted 2.8%, while Germany's DAX was up 2.7% and the French CAC 40 soared 3.5%.
Asian shares were also higher. The Shanghai Composite rose 0.5%, while the Nikkei 225 and Hang Seng each gained 1.6%. India's Sensex was up 2.2%.
Australian Market Report – Local Market Expected To Open Higher
Ahead of the local open, SPI futures were 66 points higher at 5,207.
Monday 5 October – close. The Australian market traded higher after open, buoyed by positive global sentiment. The ASX was hovering at the day's highs throughout the day, to close 1.9 per cent higher, with gold miners and BHP leading gains. All sectors closed in the green, with health care profiting most. The Australian dollar appreciated against most major currencies.
The All Ordinaries rose 94.90 points to 5,184.10 while the S&P/ASX 200 lifted 98.50 points to 5,150.50.
Aurizon Holdings (AZJ)
Aurizon Holdings announced that its wholly-owned subsidiary, Aurizon Network, has received notices, the validity of which it disputes, from seven of the eight Wiggins Island Rail Project customers. Those notices purport to exercise a right under the relevant agreements to reduce the financial exposure of those customers to Aurizon Network in respect of the Wiggins Island Rail Project. Aurizon Network and eight coal companies are parties to Wiggins Island Rail Project Deeds, which the Company announced on 5 September 2011. Under the Project Deeds Aurizon Network was to receive certain payments, which would deliver an above regulatory return on its investment in the $831m Wiggins Island Rail Project, in return for Aurizon Network agreeing to develop the project on time and for a lower than forecast cost. AZJ gained 12 cents to $5.24.
Adelaide Brighton (ABC)
Adelaide Brighton announced JPMorgan Aus Investment Forum presentation. The Co. reported NPAT up 8.5% to $166.5m. The Company has a healthy growth in revenue, EBIT and profit. Operating cash flow grew strongly. The Company increased fully franked interim dividend of 8.0 cents and special dividend of 4.0 cents. Cement and clinker volumes increased in 1H2015 compared to pcp. Excluding property, underlying cement margins increased in 1H2015 compared to pcp. Concrete and Aggregates improved demand across all markets supported by residential construction and commercial projects. Sales volume of cement and clinker in 2015 to be slightly higher than 2014. Positive outlook for remainder of 2015 are supported by market demand, cost initiatives and property sales. ABC added 14 cents to $4.47
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