US optimism drives strong start to week
The positive jobs report, which showed 204,000 new jobs were created in October, much more than the expected 125,000, lent weight to views that the world's biggest economy is in better health than previously thought.
The Dow Jones Industrial Average jumped 1.1 per cent, at 15,761.78 points, on Friday, and the Standard & Poor's 500 Index climbed 1.3 per cent, at 1770.61 points.
It also led to speculation at the weekend that the US Federal Reserve may begin "tapering" its multibillion-dollar bond buying program this year, rather than early next year.
As a consequence, the SPI futures index on Sunday showed the Australian sharemarket opening 1 per cent higher.
It comes after the local market shed 0.2 per cent as the Reserve Bank of Australia forecast rising unemployment and below-trend growth in 2014.
The RBA's November statement on monetary policy said a large drop in resource investment and continued strength in the Australian dollar would likely drag on Australia's economy, leaving open the chance of another interest rate cut.
The central bank said gross domestic product would likely rise between 2 and 3 per cent in the year to December 2014, compared with earlier forecasts of economic growth of between 2.5 and 3.5 per cent.
It expects the outlook for inflation to remain "consistent" within the 2-3 per cent target range.
The inflation rate is 2.2 per cent. The official cash rate remains at a historically low 2.5 per cent.
Meanwhile, Chinese data showed industrial output in the world's second biggest economy accelerated in October, while retail sales showed solid gains and inflation remained stable, showing early signs of fourth-quarter strength.
A 10.3 per cent year-on-year gain in production at China's factories, workshops and mines announced by the National Bureau of Statistics marked a marginal acceleration from September, when the indicator showed an increase of 10.2 per cent.
The department store Myer will publish its first-quarter sales results on Wednesday.
The figures will help to shed light on the strength of sales trading in the run-up to the crucial Christmas holiday period.
On Friday, Myer stocks closed at $2.58, up 3.2 per cent for the week. With agencies
Frequently Asked Questions about this Article…
The US stock market closed higher on Friday due to an unexpectedly strong employment report, which showed 204,000 new jobs were created in October, surpassing the expected 125,000. This positive jobs report boosted investor confidence in the health of the US economy.
The US stock market closed higher on Friday due to an unexpectedly strong employment report, which showed 204,000 new jobs were created in October, surpassing the expected 125,000. This positive jobs report boosted investor confidence in the health of the US economy.
Following the positive jobs report, the Dow Jones Industrial Average jumped 1.1% to 15,761.78 points, and the Standard & Poor's 500 Index climbed 1.3% to 1770.61 points, reflecting increased investor optimism.
On Friday, the Dow Jones Industrial Average jumped 1.1% to 15,761.78 points, while the Standard & Poor's 500 Index climbed 1.3% to 1,770.61 points, reflecting the positive sentiment from the strong US employment report.
The strong US jobs report led to speculation that the US Federal Reserve might begin tapering its bond-buying program sooner than expected. As a result, the SPI futures index indicated that the Australian sharemarket would open 1% higher on Monday.
The strong US jobs report led to speculation that the US Federal Reserve might begin tapering its bond-buying program sooner than expected. As a result, the SPI futures index indicated that the Australian sharemarket would open 1% higher on Monday.
The Reserve Bank of Australia's November statement on monetary policy forecasted rising unemployment and below-trend growth in 2014, with GDP expected to rise between 2% and 3%. The RBA also noted potential economic drag from a drop in resource investment and a strong Australian dollar.
The Reserve Bank of Australia forecasts rising unemployment and below-trend growth in 2014. They expect GDP to rise between 2% and 3% by December 2014, compared to earlier forecasts of 2.5% to 3.5% growth. The RBA also expects inflation to remain within the 2-3% target range.
The inflation rate in Australia is currently 2.2%, and the official cash rate remains at a historically low 2.5%, consistent with the RBA's target range of 2-3% for inflation.
Recent data from China shows that industrial output accelerated in October, with a 10.3% year-on-year gain in production. Retail sales also showed solid gains, and inflation remained stable, indicating early signs of strength in the fourth quarter.
Recent data from China showed that industrial output accelerated in October, with a 10.3% year-on-year gain in production. Retail sales also showed solid gains, and inflation remained stable, indicating early signs of fourth-quarter strength in the world's second-largest economy.
The current inflation rate in Australia is 2.2%, and the official cash rate remains at a historically low 2.5%.
Myer is set to publish its first-quarter sales results on Wednesday. These figures will provide insights into the strength of sales trading leading up to the crucial Christmas holiday period, potentially impacting Myer's stock performance.
Myer is set to publish its first-quarter sales results on Wednesday. These figures will provide insights into the strength of sales trading leading up to the crucial Christmas holiday period.
Myer's stock closed at $2.58 on Friday, marking a 3.2% increase for the week, reflecting positive investor sentiment ahead of its upcoming sales results announcement.
Myer stocks closed at $2.58 on Friday, marking a 3.2% increase for the week, reflecting positive investor sentiment ahead of the company's upcoming sales report.
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