Australian Stock Market Report - Morning

While US economic data was mainly upbeat, other figures showed US consumer sentiment falling from 70.6 to 67.4 in November. And durable goods orders fell by 0.6pct on October after an upwardly revised 2.0pct gain in September. Excluding defence, orders were up 0.5pct.

European shares rose on Wednesday with investors encouraged by a batch of positive US economic data. Pharmaceutical stocks were amongst the best gainers. The FTSEurofirst index rose by 0.5pct with the UK FTSE up 0.8pct and the German Dax higher by 0.6pct.

US sharemarkets posted modest gains in response to encouraging economic data. At the close of trade the Dow Jones was up 30 points or 0.3pct with the S&P 500 up by 0.5pct and the Nasdaq was higher by almost 7 points or 0.3pct.

US treasuries reversed earlier losses after an auction of seven-year notes was met with better-than-expected demand. Treasury prices had fallen earlier in the session in response to solid economic data. US 10yr yields fell by 4pts to 3.26pct with US 2yr yields flat near 0.74pct.

Major currencies rose against the greenback on Wednesday with solid US economic data raising hopes for global economic growth. The Euro lifted from lows near US$1.4980 to US$1.5140, trading near the highs in late US trade. The Aussie dollar rose from lows near US92.35c to around US93.20c, trading near the highs in late US trade. And the Japanese yen strengthened from 88.40 yen per US dollar to near JPY87.30, consolidating near the strongest levels in late US trade.

Crude oil prices rose on Wednesday in response to positive US economic data and a smaller-than-expected increase in US oil inventories. US crude stocks rose by 1.0 million barrels in the latest week, below consensus views for a 1.2mb increase. The Nymex oil contract rose by US$1.94 or 2.6pct to US$77.96 a barrel And London Brent crude rose by US$1.98 to US$78.44 a barrel.

Base metal prices posted firm gains on the London Metal Exchange on Wednesday as the greenback fell. Metals rose between 1.2-3.2pct with zinc and lead doing best. And the price of gold also rose for the eighth consecutive day with the Comex quote up US$21.20 an ounce to US$1,187.00 after earlier hitting record highs of US$1,189.80. The US Mint has suspended sales of gold coins as they have run out of stock.

Ahead: In Australia, private capital expenditure (business investment) figures are released. In the US, the Thanksgiving Day holiday is observed.