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http://www.theage.com.au/news/business/wall-street-records-and-positive-news-to-boost-local-market/2007/10/07/1191695740267.html?page=fullpageWall Street records and positive news to boost local marketOctober 8, 2007THE Australian stock market is expected to open stronger today, after solid monthly jobs data in the US boosted stocks on Wall Street on Friday.US banks and financial stocks lifted as employment growth eased fears that the American economy was headed for recession as a result of defaults in the subprime mortgage market. US Labour Department figures revealed payrolls lifted by 110,000 jobs in September. Furthermore, a fall of 4000 in the prior month was revised upwards to an increase of 89,000, which calmed investors who were concerned that subprime mortgage losses were weighing upon the economy.The Dow Jones industrial average rose 91.7 points, or 0.66 per cent, to 14,066.01 while the Standard & Poor's 500 Index was 14.75 points, or 0.96 per cent, higher at a record close of 1557.59."I expect the Australian share market to open strongly … up about 50 to 60 points, following record-breaking performances on Wall Street and European markets, as investors responded to solid US employment growth data and indications that a resilient US economy continues to resist the pull of a housing-induced recession," MFS Investment Management chief executive Guy Hutchings said."However, I believe the US economy is far from out of the woods yet, and the relative state of composure within the debt markets at present may now face the prospect that successive near-term (interest) rate cuts by the (US) Federal Reserve may be much less certain," he said.BHP Billiton and Rio Tinto should continue to rally as base metal and commodity prices continue to rise on expectations of global growth continuing above trend levels, he said. Last Friday, the S&P/ASX200 closed 38.5 points higher at 6605.4, and the All Ordinaries gained 37.4 points to 6617.3.The local bourse will be focusing on a range of economic data this week, including ANZ job advertisements, NAB business survey, housing finance data and monthly job figures.
http://www.theage.com.au/news/business/wall-street-records-and-positive-news-to-boost-local-market/2007/10/07/1191695740267.html?page=fullpage
Wall Street records and positive news to boost local market
October 8, 2007
THE Australian stock market is expected to open stronger today, after solid monthly jobs data in the US boosted stocks on Wall Street on Friday.
US banks and financial stocks lifted as employment growth eased fears that the American economy was headed for recession as a result of defaults in the subprime mortgage market. US Labour Department figures revealed payrolls lifted by 110,000 jobs in September. Furthermore, a fall of 4000 in the prior month was revised upwards to an increase of 89,000, which calmed investors who were concerned that subprime mortgage losses were weighing upon the economy.
The Dow Jones industrial average rose 91.7 points, or 0.66 per cent, to 14,066.01 while the Standard & Poor's 500 Index was 14.75 points, or 0.96 per cent, higher at a record close of 1557.59.
"I expect the Australian share market to open strongly … up about 50 to 60 points, following record-breaking performances on Wall Street and European markets, as investors responded to solid US employment growth data and indications that a resilient US economy continues to resist the pull of a housing-induced recession," MFS Investment Management chief executive Guy Hutchings said.
"However, I believe the US economy is far from out of the woods yet, and the relative state of composure within the debt markets at present may now face the prospect that successive near-term (interest) rate cuts by the (US) Federal Reserve may be much less certain," he said.
BHP Billiton and Rio Tinto should continue to rally as base metal and commodity prices continue to rise on expectations of global growth continuing above trend levels, he said. Last Friday, the S&P/ASX200 closed 38.5 points higher at 6605.4, and the All Ordinaries gained 37.4 points to 6617.3.
The local bourse will be focusing on a range of economic data this week, including ANZ job advertisements, NAB business survey, housing finance data and monthly job figures.
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