(RTTNews) - The Australian stock market closed Friday’s session slightly higher amid caution ahead of an expected interest rate cut next week. After starting off weak on the back of lower commodity prices, stocks saw some strength in the afternoon session and finished in positive territory. The benchmark S&P/ASX 200 index closed up 16.9 points or 0.4% at 4,018.0, extending its gains for the third consecutive trading session. The broader All Ordinaries index rose 25.4 points or 0.6% to finish at 3,982.7.

The local market lost about A$160 billion over the month, with the All Ordinaries index losing 648.6 points, or 14%, and the S&P/ASX 200 index falling 582.5 points, or 13%, its worst monthly result since its inception in 1992.

In the currency market, the Australian dollar ended the local session down 2.2%, as weaker commodity prices and a decision by Japan’s central bank to cut interest rates lowered demand for riskier currencies. The Aussie closed at US$0.6711-0.6716, down from Thursday’s close of US$0.6859-0.6864.

The board of the Reserve Bank of Australia is scheduled to hold its next regular monthly meeting on Tuesday, November 4.

U.S. stocks closed higher Thursday following a report that the U.S. GDP fell 0.3% in the third quarter, lower than the analysts’ expectation for a 0.5% decline. The Dow closed up 190 points or 2.1% at 9,181, the Nasdaq gained 41 points or 2.5% to 1,699, and the S&P 500 advanced 24 points or 2.7% to 954.

Oil fell for a second day on Friday, dropping more than 2%, and is set for its biggest monthly loss after weak U.S. GDP data refocused attention on falling demand. Oil was quoted at $64.40 a barrel, down $1.56 or 2.37%, by 1:52 a.m. ET after the contract for December delivery settled down $0.79 at $65.40 on Thursday in U.S. trading.

On the economic front, an Australian Housing Industry Association report showed that home sales in Australia declined for the third straight month in September. Sales of new homes decreased 1.8%, following a 1.3% drop in August. Sales of stand-alone houses fell 2.3% in September, the eighth consecutive month of declines for detached house sales.

The Australian Bureau of Statistics also released its data on private sector credit for September. Australia’s private sector credit rose 0.7% on month. On an annual basis, private sector credit was up 10.1%. Housing sector credit increased 0.6% and business sector credit rose 1.1%, while personal sector credit declined 0.3% on month.

The big diversified miners were mixed, with Rio Tinto gaining 0.4%, index leader BHP Billiton losing 2.1% and Fortescue plunging 6.1%. Among gold miners, Newcrest Mining rose 1.4%, but Lihir Gold plunged 4.9% after gold prices fell in Sydney. In the energy sector, Oil Search surged 4.7%, but Santos lost 3.3% and Woodside shed 3.0%, as oil prices continued to fall on Friday on demand concerns.

Banks also closed mixed. Westpac slipped 0.1%, ANZ dropped 1.1%, and National Australia Bank declined 0.8%, while Commonwealth Bank gained 0.3%. St George Bank jumped 2.5% and investment bank Macquarie Group rose 1.3%.

Childcare provider ABC Learning Centres, which today delayed its annual results for a third Friday, closed unchanged. Pipeline manufacturer and distributor Crane Group edged up 0.3% after the company said that its profit for the current year would be similar to last year despite challenging market conditions.

ConnectEast Group declined 1.4% after the company said that traffic flow on its EastLink tollroad would eventually rise to match the number of passengers who used the road during a month when no toll was charged.

In the retail sector, Woolworths added 1.1% and Wesfarmers jumped 3.3%, while David Jones plummeted 4.7% and Harvey Norman gave away 2.6%.

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Posted in Categories: Australia, Economy, Japan, Releases, USA.

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