Australia shares and dollar continue to rise
Gains on Wall Street and improved market sentiment signal that the Australian shares are to continue its rise.
There was a large jump in job creation in the United States recorded in October, higher that what is expected, and his has lead to a higher close in Wall Street last Friday.
As US unemployment continue to remain unchanged at 9.6 per cent, the news about jobs boosted Wall Street stocks higher.
There was an increase in the blue-chip Dow Jones which was recorded to be 9.16 points or 0.08 per cent to 11,444.00. The broader S&P 500 index recorded a gain of 0.39 per cent to 1,225.84 while Nasdaq composite index on the other hand, added 0.06 per cent to 2,578.98. The promising lead is expected to see local stocks adding to the six-month high they hit on Friday.
The share price index futures contract for the month of December is leading to an 18 point rise as trading opens on Monday, which is represented by a 0.37 per cent lift.
The gains last week on many global equity markets followed US Federal Reserve’s announcement of their new stimulus plan which aims to inject an additional $US600 billion, which is $A592.83 billion, into the financial system. This plan is slated to be implemented by mid-2011 as an effort to boost the economic recovery.
Despite the mixed views regarding the long-term benefits of the said move, analysts are still positive that it will fuel the marketing gains at least before the year ends.
The Australian dollar trades at 101.57 US cents, maintaining its high parity with the US dollar and is said to remain strong as predicted by Mr. Oliver, AMP Capital Investors chief economist. The employment data for the month of October is set to be released on Thursday of the coming week. Local investors are also watching out for China’s release of its recent economic development.
