Chinese growth to boost local bourse

Australian shares are set to open higher buoyed by the big miners as the pace of growth in China, their biggest customer, appears to have bottomed, and as fears ease of an imminent military strike against Syria.
杭州桑拿

Here’s what you need2know this Tuesday morning:SPI futures up 11 pointsAUD fetching 92.33 US cents, 91.95 yen, 69.65 euro cents, 58.81 penceOn Wall St, Nasdaq +1.3%, Dow Jones +0.9%, S&P500 +1%In Europe, Eurostoxx -0.2%, FTSE100 -0.3%, CAC, -0.2%, DAX flatSpot gold down to $US1386.71 an ounceBrent oil slips to $US113.19 per barrelIron ore rises to $US134.80 per tonne

In economic news today, the National Australia Bank’s monthly business survey for August is due to be released.

In equities news, CUA is expected to post full year results.

The Australia market will also be waiting on the release of more Chinese data, including retail sales and industrial production. These are expected at 3.30pm AEST.

“Given we have major Chinese data released at 3.30pm and that it’s tended to beat of late, it’s highly likely that gains will accelerate towards the close in anticipation of further economic improvement,” said Arab Bank treasury dealer David Scutt.

“Economists are looking for industrial activity to rise 9.9% on year, above the 9.7% pace of July, with retail sales likely to hold at 13.2% for a second-consecutive month,” Mr Scutt said.

Global markets

US stocks rose, helped by optimism that a military strike on Syria might be avoided.

At the closing bell on Monday, the Dow Jones Industrial Average was up 138.85, or 0.9 per cent to 15,061.35.

The broad-based S&P 500 increased 16.39, or 1 per cent, to 1,671.56, while the tech-rich Nasdaq Composite Index put on 46.17, per cent 1.3, at 3,706.18.

Stocks opened higher overnight after strong Chinese export data suggested better times for the world’s second-biggest economy.

The rally was given further strength by a Russian proposal to put Syrian chemical weapons under international control.

The US reacted cautiously to the plan, which comes as US President Obama faces a sceptical reception in Congress to plans to launch a military strike on Syria. Stocks moved higher at mid-day and stayed fairly high through the close.

London’s benchmark FTSE 100 index ended Monday down 0.3 per cent at 6,530.74 points.

Frankfurt’s DAX 30 was virtually unchanged at 8,276.32 points and the CAC 40 in Paris slid 0.2 per cent to 4,040.33 points.

Asian markets rose as strong Chinese trade data lifted hopes for the global economic outlook while Japanese stocks were boosted by improved growth figures and Tokyo’s successful bid to host the 2020 Olympics.

Weaker-than-forecast US jobs figures raised concerns about the world’s number one economy but also fuelled hope that the Federal Reserve will hold off winding down its stimulus program for the time being.

Tokyo rose 2.5 per cent, or 344.42 points, to 14,205.23. Japanese dealers bought into construction and real estate plays after Tokyo’s Olympics success, while there was also cheer for better-than expected gross domestic product data for the April-June quarter.

Hangzhou soared 3.4 per cent, or 72.53 points, to 2,212.52 and Hong Kong added 0.6 per cent, or 129.43 points, to 22,750.65. Seoul closed 1 per cent higher, adding 19.36 points to 1,974.67.

Commodities

Oil prices lost support after hitting 28-month highs over fears of fallout from a possible US military attack on Syria for its alleged use of chemical weapons.

The markets also shrugged off buoyant economic data from China and Japan, with the latter’s second quarter growth rate revised higher to 0.9 per cent and China’s August trade surplus coming in larger than expected.

In New York trade overnight, the benchmark WTI crude for October delivery lost $US1.01 from Friday to finish at $US109.52 a barrel.

In London, Brent North Sea crude for October settled at $US113.72 a barrel, down $US2.40 from Friday.

Some of the weakness appeared to stem from the details of China’s August trade report, which showed oil imports falling.

Gold futures settled almost unchanged after quiet trading, as the absence of definitive news about Syria kept many traders on the sidelines.

The most actively traded contract, for December delivery, on Monday rose 20 US cents to close at $US1,386.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Spot gold was at $US1386.71.

BusinessDay with wires

The original release of this article first appeared on the website of Hangzhou Night Net.

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