Stocks Set to a Good Start

The Australian stock market is off to a good start today, along with strong performance by Wall Street and the European markets.

The Australian dollar rose higher than the US dollar and the euro, with the buying rate going at $US1.036. This is the highest rate since May of this year.

According to one analyst, the market received boosts from overseas. Maxim Asset Management investment director Winston Samut, the resources sector has gained lost ground which they suffered yesterday.

Samut added that even though BHP and Rio are up, there is still a flight to quality with many investors buying Telstra and the banks.

The mining industry also received a boost, thus, recovering from yesterday’s losses.

Overseas, bonds in Germany also rose, with only two to five year yields dropping. In the United States, the Dow Jones average was up at 0.81 percent while the Nasdaq Composite Index rose at 1.12 percent.

The European market closed to good standings, appeasing the nerves of many investors, while stocks in Asia experienced a decline, amidst concern of job losses and failing profits with some Asian companies.

Oil prices are expected to go higher because of the rising tension in Syria and Israel.

Yesterday’s records show that the ASX200 ended the day by going down 17.1 points or 0.4 percent while All Ordinaries fell at 0.45 percent or 18.9 points.