MARKET NEWS

Aust shares open comfortably higher
25/09/2017 10:22 AM

The Australian market has opened around a third of a per cent higher as investors shrug off concerns over US-North Korea tension.

At 1015 AEST on Monday, the benchmark S&P/ASX200 index was up 19.1 points, or 0.34 per cent, at 5,701.2, while the broader All Ordinaries index was up 17 points, or 0.30 per cent, at 5,757.6 points.

In futures trading, the SPI200 futures contract was also up 17 points, or also 0.30 per cent, at 5,689 points.

Aust shares look set to open up slightly
25/09/2017 7:40 AM

The Australian market looks set to open slightly higher on a weak lead from Wall Street which closed little changed as worries about Washington's latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea.

At 0700 AEST on Monday, the share price futures index was up seven points, or 0.12 per cent, at 5,679.

In the US, the S&P 500 closed slightly higher after Republican Senator John McCain said he opposed his Republican peers' latest effort to replace former president Barack Obama's healthcare law.

Investor jitters over a fresh exchange of barbs between North Korea and the United States also eased.

The Dow Jones Industrial Average fell 0.04 per cent, the S&P 500 gained 0.06 per cent and the Nasdaq Composite added 0.07 per cent.

Locally, in economic news on Monday, CoreLogic releases its survey of capital city house prices for the week just ended.

In equities news, Premier Investments is slated to release its full-year results.

Meanwhile, the 2017 Sydney China Business Forum is on in Sydney.

The Australian market on Friday broke a three-day losing streak as some buyers returned to the market despite negative overseas leads, although volumes were muted with no strong theme directing trading..

The benchmark S&P/ASX200 index rose 26.7 points, or 0.47 per cent, to 5,682.1 points.

The broader All Ordinaries index gained 23.9 points, or 0.42 per cent, to 5,740.6 points.

Meanwhile, the Australian dollar is higher against its little changed US counterpart, despite a fall in iron ore prices.

The local currency was trading at 79.54 US cents at 0700 AEST on Monday, from 79.46 on Friday.

CURRENCY SNAPSHOT AT 0700 AEST:

One Australian dollar buys:

* 79.54 US cents, from 79.46 on Friday

* 89.22 Japanese yen, from 88.91 yen

* 66.84 euro cents, from 66.39 euro cents

* 58.96 British pence, from 58.55 pence

* 108.92 NZ cents, from 108.83 cents

GOLD:

The spot price of gold in Sydney at 0700 AEST was $US1,296.38 per fine ounce, from $US1,297.67 per fine ounce on Friday.

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, 2.0468pct, unchanged

* CGS 4.75pct April 2027, 2.7429pct, unchanged

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.18 (implying a yield of 2.82pct), from 97.175 (implying a yield of 2.825pct) on Friday

* December 2017 3-year bond futures contract at 97.80 (2.20pct), from 97.81 (2.19pct).

(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)

$A is slightly higher against $US
25/09/2017 6:56 AM

The Australian dollar is slightly higher against its US counterpart which, along with equities and interest rates, has remained little changed since Friday.

At 0635 AEST on Monday, the Australian dollar was worth 79.51 US cents, up from 79.46 US cents on Friday.

Westpac's Imre Speizer says the US dollar, interest rates, and equities were little changed on Friday night, amid a series of Federal Reservse speeches.

"The US dollar index closed Friday little changed. (The) EUR made a round trip from 1.1950 to 1.2004 and back for little net change, but the German election result is expected to weigh when it opens this morning," he said in a Monday morning note.

"(The British pound) GBP was the worst performer, following a speech by (British) PM May, and Moody's downgrade to Aa2, falling from 1.3596 to 1.3451.

"(The) AUD rose from 0.7940 to 0.7986. NZD rose from 0.7280 to 0.7344. AUD/NZD slipped from 1.0897 to 1.0842, iron ore shedding 3.8 per cent to a two-month low."

He said Federal Reserve speakers included Dallas president Robert Kaplan (open minded about another rate hike in 2017), Kansas City president Esther George (need to keep rate hike momentum), and San Francisco president John Williams ("2.5 per cent is about the new normal" for the Fed rate).

Mr Speizer expects the local currency to be "neutral in a 0.7900-0.8000 range, but possibly weighed down today by any negative EUR reaction to the German election".

The Aussie dollar is also higher against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON MONDAY

One Australian dollar buys:

* 79.51 US cents, from 79.46 on Friday

* 89.23 Japanese yen, from 88.91 yen

* 66.79 euro cents, from 66.39 euro cents

(*Currency closes taken at 1700 AEST previous local session)