Australian Stock Market Follows US Gains

Hopeful development in Australian stock market after 8-week high at the Wall Street. US stocks sent positive message to the the stocks around the world trading over the 9,000 mark on Thursday. Signaling nice profits last quarter, Ford and few others sent Dow Jones trough the roof.

Rather than moderate Australian stock market trading opened with some positive notes. The major Australian Indexes were up AOI was up 44 points and ASX 200 43 points higher in about hour of trading. Mining and media stocks lead their way in trading. The news of Nufarm takeover by Chinese firm was also a sign of positive liquidity on the market.

Major Australian stock market petroleum industry players were a bit on the negative side amid lower profit quarters and lower expectation, but promising to meet overall yearly production estimates. Second largest petroleum producer in Australia reported one cent higher dividend comparing to last year, proving stable but moderate profit.

Overall Australian stock market perform reflecting any developments in the US. Major contributor to US economy Australia will mirror any positive changes in US economy. This is true about England and Japanese trade markets. Many suggest this is still too optimistic to talk about recovery but we witness that world markets love Dow Jones latest development.

Australian dollar is slightly down just to show lower Australian securities sale. Australia sold securities totaling to $499 million maturing 2021. Also, government bonds were lower second day.

Vladimir Dubchak
Financial Analyst