SYDNEY: The Australian sharemarket opened higher after European markets rose on the hopes of further central bank stimulus and after Wall Street was underpinned by strong economic data.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index had gained 17.5 points, or 0.35 per cent, 5045.3, while the broader All Ordinaries lifted 15.5 points, or 0.31 per cent, to 5064.2
On European markets, France’s CAC 40 bounded 2.2 per cent higher, while Germany’s DAX 30 surged 2.7 per cent as European Central Bank chief Mario Draghi left the door open for further stimulus.
At the close, the Dow Jones Industrial Average rose 0.1 per cent, the S&P 500 inched up 0.1 per cent, while the Nasdaq Composite Index bucked the trend in slipping 0.4 per cent. Chinese markets are set to remained closed for a second and final session today.
IG market analyst Angus Nicholson said the services and non-manufacturing PMI numbers out of the US overnight had been “strong” while Mr Draghi’s comments meant it appeared “likely that they will step up quantitative easing stimulus with most seeing December as a potential starting date”.
Locally, in economic news today, the Australian Bureau of Statistics releases July’s overseas arrivals and departure figures, which includes tourist movements as well as migration flows.
Meanwhile, the three-day Africa Down Under Conference concludes in Perth.
Materials stocks led the improvers, lifting 1.28 per cent as the price of iron ore remained within US60c of a two-month high in overnight trading.
BHP Billiton lifted 2.34 per cent to $24.89 and Rio Tinto added 1.73 per cent to $50.12.
Energy stocks opened 0.51 per cent stronger after an uneventful session on oil markets overnight.
Santos was flat at $4.53 while Woodside Petroleum had added 1.71 per cent to $30.98. Oil Search fell 1.89 per cent to $6.76.
