Australia Markets open in 2 hrs 28 mins

Aust shares look set to open modestly up

 

The Australian share market looks set to open higher amid continuing positive sentiment and after better-than-expected produce price index figures boost Wall Street's Dow and S&P500 indexes.

At 0700 AEDT on Wednesday, the share price futures index was up 12 points, or 0.2 per cent, at 6,030.

In the US, a Labour Department report showed that November producer prices rose as petrol prices surged and the cost of other goods increased, leading to the largest annual gain in nearly six years and pointing to a broad acceleration in wholesale inflation pressures.

In late afternoon, the Dow Jones Industrial Average was up 0.62 per cent, the S&P 500 had gained 0.27 per cent but the Nasdaq Composite had dropped 0.12 per cent.

Locally, in economic news on Wednesday, Reserve Bank of Australia governor Philip Lowe is slated to speak at the Australian Payment Summit in Sydney, along with RBA Head of Payments Policy Tony Richards.

RBA Assistant Governor (Financial Markets) Chris Kent is expected to speak on the topic of The Availability of Business Finance at the 30th Australasian Finance and Banking Conference, also in Sydney.

No major equities news is expected on Wednesday.

The Australian market on Tuesday closed higher buoyed by strength in the heavyweight energy and mining sectors.

The benchmark S&P/ASX200 index rose 14.9 points, or 0.25 per cent, to 6,013.2 points.

The broader All Ordinaries index gained 11.2 points, or 0.18 per cent, to 6,093.1 points.

Meanwhile, the Australian dollar has gained against the US dollar, which also rose on the stronger-than-expected PPI figures.

The local currency was trading at 75.59 US cents at 0700 AEDT on Wednesday, from 75.36 on Tuesday.

CURRENCY SNAPSHOT AT 0700 AEDT:

One Australian dollar buys:

* 75.59 US cents, from 75.36 on Tuesday

* 85.85 Japanese yen, from 85.50 yen

* 64.40 euro cents, from 64.01 euro cents

* 56.77 British pence, from 56.46 pence

* 108.97 NZ cents, from 108.73 cents

GOLD:

The spot price of gold in Sydney at 0700 AEDT was $US1,243.09 per fine ounce, from $US1,244.94 per fine ounce on Tuesday.

BOND SNAPSHOT AT 0700 AEDT:

* CGS 4.50 per cent April 2020, 1.8846pct, unchanged

* CGS 4.75pct April 2027, 2.4857pct, unchanged

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.4375 (implying a yield of 2.5625pct), from 97.46 (implying a yield of 2.54pct) on Tuesday

* December 2017 3-year bond futures contract at 97.98 (2.02pct), from 97.46 (2.54pct).

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