Aussie shares close higher ahead of rates decision, US election

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The Australian share market finished slightly higher as investors await the United States presidential election and a local interest rate decision on Tuesday.

At the close on Monday, the benchmark S&P/ASX200 index was up 14 points, or 0.31 per cent, at 4,474.1, while the broader All Ordinaries index was up 10.3 points, or 0.22 per cent, at 4,493.6.

On the ASX 24, the December share price index futures contract was 14 points higher at 4,459, with 25,136 contracts traded.

RBS Morgans director of equities Bill Chatterton said volumes were modest, but investors were buoyed that that the mining sector had posted strong gains.

“We didn’t expect it to be as positive as it was, after the Dow fell on Friday,” Mr Chatterton said.

“All markets are a little apprehensive ahead of the US election and the leadership transition in China.”

Many local market participants would take a break from trading to watch the Melbourne Cup on Tuesday.

On Wall Street on Friday, an encouraging October US jobs report initially lifted shares but the gains were lost and the main indices ended lower as caution grew ahead of next Tuesday’s presidential election.

The Dow Jones Industrial Average lost 139.46 points, or 1.05 per cent, at 13,093.16 points.

Locally in the resources sector, global miner BHP Billiton strengthened 40 cents to $34.82, and Rio Tinto added $1.50 cents to $58.88.

Among the major banks, Westpac was 32 cents higher at $25.35 after it said net profit for the 12 months to September 30, 2012, came in at $5.97 billion, down 15 per cent from the prior corresponding period, due to the tax implications of its takeover of smaller rival St George.

But cash earnings – banks’ preferred measure of financial performance – rose five per cent to $6.6 billion.

ANZ rose one cent to $25.16, Commonwealth Bank gain three cents to $57.40, and National Australia Bank was three cents lower at $24.84.

National turnover was 1.3 billion securities worth $3.1 billion, with 404 stocks down, 553 up and 353 unchanged.