The retailers have led the gains with Woolworths adding more than three per cent off speculation that it will offload its underperforming Big W business, while Myer, Wesfarmers and JB Ji-Fi were also higher following encouraging Christmas spending forecasts.
However, resource and energy stocks remain under pressure with BHP Billiton, Rio Tinto, Santos and Newcrest Mining all down.
The banks were flat at noon with worst performer ANZ off by six cents or 0.22 per cent at $27.68.
Earlier, the rising US dollar was adding to the pressure on resource and energy stocks, IG market analyst Angus Nicholson said.
“There were no major developments over the weekend to drive the market today,” he said.
“The US dollar rose again during Friday trade which further weakened commodity prices.”
He said the market was also expecting strong second quarter gross domestic product numbers from the US later this week which would give a further boost to the US dollar and drag commodity prices even lower.
Among the major resource stocks, BHP Billiton was 62 cents lower at $19.88, Rio Tinto was down 68 cents at $47.93, while Fortescue Metals bucked the trend to rise two cents to $2.11 at 10.20am (AEDT).
Energy player Woodside Petroleum had shed eight cents to $29.92 and Santos had dropped 11 cents to $4.03.
All four major banks were slightly weaker.
Meanwhile, department store chain Myer was up two cents, or 1.94 per cent, to $1.05 after releasing better-than-expected quarterly sales results last week.
And Woolworths was 78 cents higher at $24.49 amid speculation that it was looking to offload its Big W variety store chain. At 7am (AEDT) on Monday, the local unit was trading at 72.34 US cents, up from 71.99 cents on Friday.
Late on Friday night, it peaked at 72.51, its highest level since October 27.
OM Financial senior client adviser Stuart Ive says it’s it a bit strange that the Australian dollar is higher.
“At the end of the day, it stems from the fact that the RBA is firmly on the fence in terms of monetary policy,” he said.
“There was that heightened expectation of a rate cut after the local banks put up their lending rates but that didn’t materialise.”
Ive doesn’t expect the Australian dollar to rise any further.
“We’re tapped out on the upside; we’ve had a good two-day rally,” he said.
Ive added that if the US Federal Reserve does raise its interest rate in December he expects the Australian dollar to fall to around 70 US cents.
At 6.45am (AEDT) on Monday, the December share price index futures contract was down five points at 5,259.
Locally, no major economic news is expected on Monday.
In equities news, Lynas, Flexigroup and Yowie Group have their annual general meetings.
In Australia, the market on Friday closed only slightly higher on Friday amid light trading volumes.
The benchmark S&P/ASX200 index rose 13.5 points, or 0.26 per cent, to 5,256.1 points.
The broader All Ordinaries index gained 12.2 points, or 0.23 per cent, at 5,305.5 points.
NEW YORK – Nike’s dividend increase and strong earnings from Ross Stores and Abercrombie & Fitch have lifted US stocks, finishing a strong week on a positive note.
Dow-member Nike shot up 5.5 per cent on Friday as it increased its dividend 14 per cent, unveiled a new $US12 billion ($A16.5 billion) share repurchase plan and approved a two-for-one stock split.
Teen-oriented fashion chain Abercrombie & Fitch surged 25.0 per cent while Ross Stores jumped 10.0 per cent following better-than-expected results. Those results helped offset gloomy reports from Macy’s and some other retailers earlier in the earnings season.
“That’s certainly giving a better backdrop to expectations for holidays than maybe it was two weeks ago,” said Michael James, managing director of Wedbush Securities.
“The strength in the consumer stocks is helping to continue the sentiment we had all week.”
The Dow Jones Industrial Average gained 91.06 points (0.51 per cent) to 17,823.81.
The broad-based S&P 500 rose 7.93 (0.38 per cent) to 2089.17, while the tech-rich Nasdaq Composite Index advanced 31.28 (0.62 per cent) to 5104.92.
LONDON – ECB chief Mario Draghi has pulled the rug out from under a rebound in the euro with a pledge to lift ultra-low inflation, while stocks markets have shrugged off the latest terror attack.
Speaking in Frankfurt on Friday, Draghi declared the European Central Bank’s leaders will “do what we must” to lift inflation as quickly as possible, in a new sign it could boost its anti-deflation defences.
He noted that inflation was stubbornly way below the target of close to two per cent even though the bank has deployed a 1.1-trillion-euro ($A1.64 trillion) stimulus scheme to help lift consumer prices.
The quantitative easing program to buy sovereign bonds at a rate of 60 billion euros a month runs until at least September 2016, but inflation came in at zero in October.
Given a string of similar comments by ECB leaders in recent weeks analysts now expect the central bank will increase the amount of stimulus at its December meeting.
“The head of the ECB appears determined to fight the disinflationary environment,” noted London Capital Group analyst Brenda Kelly.
“A lower euro against both the dollar and the pound has been the result.”
The euro, which traded at $US1.0735 late in New York on Thursday, fell to $US1.0650.
However, Draghi’s comments failed to provide a strong boost eurozone stocks even though additional stimulus would likely boost tepid growth as well.
The DAX 30 in Frankfurt climbed to fresh three-month highs during the session before closing with a gain of 0.3 per cent to close at at 11,119.83, while the Paris CAC 40 dipped 0.08 per cent to 4,910.97.
Outside the eurozone, London’s benchmark FTSE 100 index added 0.07 per cent to end at 6,334.63 points.
HONG KONG – Investors will keep tabs on Japanese inflation figures and hints of supportive government policy next week for key trading cues, as well as the latest US economic data.
The United States is slated to release revised third-quarter gross domestic product figures and existing home sales data for October.
The numbers will provide more clarity about the health of the world’s top economy, analysts say.
“The US economy will be in good condition if the housing figures turn out well, giving a sense of security to the Japanese market,” said Hiroaki Hiwata, strategist at Toyo Securities.
“I think that investors will also focus on Japan’s consumer price index,” he said, referring to the October inflation figures.
On Friday, Tokyo stocks closed at a fresh three-month high as last-minute bargain hunting erased losses from earlier in the day.
The Nikkei 225 index gained 0.10 per cent, or 20.00 points, to 19,879.81.
Hong Kong and Shanghai shares also ended the week on a positive note.
HK’s Hang Seng Index jumped 1.13 per cent, or 254.50 points, to finish at 22,754.72.
Shanghai’s benchmark composite index rose 0.37 per cent, or 13.44 points, to 3,630.50.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 1.27 per cent, or 28.62 points, to 2,285.83.
WELLINGTON – The S&P/NZX 50 Index rose 13.27 points, or 0.22 per cent, to 6008.52.
AAP
