Australian shares have jumped to eight-day highs, with strong gains across the board, on strong US corporate results and renewed hope for an agreement in Washington to raise the country’s debt ceiling.
Around midday, the benchmark S&P/ASX200 index was up 75.8 points, or 1.7 per cent, at 4543.9, while the broader All Ordinaries index jumped 73.3 points, or 1.6 per cent, to 4612.7.
Financials rallied 2 per cent, materials gained 1.7 per cent, but gold stocks bucked the trend, slipping 0.2 per cent.
The US House of Representatives has passed legislation allowing a conditional $US2.4 trillion ($2.25 trillion) increase in the nation’s borrowing cap.
‘‘That got the market singing, but of course the thing to watch there is that the proposal has to be put before the (US Senate), and the commentary I’ve seen hasn’t been all that positive about getting it passed,’’ he said. ‘‘The market loved it; everything is in the green.’’
The two top performing stocks were building products suppliers James Hardie and Boral, after data from the US showed an increase in home building. James Hardie rose 37 cents, or 6.5 per cent,to $6.07, while Boral was up 23 cents, or 5.7 per cent, at $4.30.
News Corp was another strong performer, up 65 cents, or 4.5 per cent, at $15.15, while its non-voting stock was up 55 cents, or 3.9 per cent at $14.63.
Overnight, News chief executive Rupert Murdoch answered questions by UK politicians on the phone hacking scandal but said he would not resign.
In the resources sector, BHP Billiton was up 77 cents, or 1.8 per cent, at $43.39 while Rio Tinto gained $1.19, or 1.5 per cent, to $82.52. BHP said this morning it had achieved production records in four commodities in 2010/11, with production of iron ore posting its 11th consecutive record.
Gold miner Newcrest Mining lost 23 cents to $40.50 on the back of a lower gold price.
Transport group Asciano says it has signed a new, five-year container contract with Danish shipping giant Maersk Line. Asciano shares were up 8 cents, or 4.9 per cent, at $1.70.
Retailer Woolworths rose 18 cents to $27.43 after reporting a 4.7 per cent lift in annual sales to $54.1 billion despite a challenging year characterised by falling prices, natural disasters and declining consumer sentiment.
Other retail stocks also were higher. Wesfarmers was up 58 cents, or 1.9 per cent, at $30.79, David Jones rose 5 cents, or 1.6 per cent, to $3.18, Myer gained 7 cents, or 3.2 per cent, to $2.44, while JB Hi-Fi was 30 cents higher, by 2 per cent, at $15.35.
Telstra shares were up 4 cents, or 1.3 per cent, at $3.08.
AAP, Reuters, with BusinessDay
Around midday, the benchmark S&P/ASX200 index was up 75.8 points, or 1.7 per cent, at 4543.9, while the broader All Ordinaries index jumped 73.3 points, or 1.6 per cent, to 4612.7.
Financials rallied 2 per cent, materials gained 1.7 per cent, but gold stocks bucked the trend, slipping 0.2 per cent.
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The dollar jumped nearly one US cent to $US1.0738, buoyed by the market's newly found optimism.- For market data by sector, click here
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The US House of Representatives has passed legislation allowing a conditional $US2.4 trillion ($2.25 trillion) increase in the nation’s borrowing cap.
‘‘That got the market singing, but of course the thing to watch there is that the proposal has to be put before the (US Senate), and the commentary I’ve seen hasn’t been all that positive about getting it passed,’’ he said. ‘‘The market loved it; everything is in the green.’’
The two top performing stocks were building products suppliers James Hardie and Boral, after data from the US showed an increase in home building. James Hardie rose 37 cents, or 6.5 per cent,to $6.07, while Boral was up 23 cents, or 5.7 per cent, at $4.30.
News Corp was another strong performer, up 65 cents, or 4.5 per cent, at $15.15, while its non-voting stock was up 55 cents, or 3.9 per cent at $14.63.
Overnight, News chief executive Rupert Murdoch answered questions by UK politicians on the phone hacking scandal but said he would not resign.
In the resources sector, BHP Billiton was up 77 cents, or 1.8 per cent, at $43.39 while Rio Tinto gained $1.19, or 1.5 per cent, to $82.52. BHP said this morning it had achieved production records in four commodities in 2010/11, with production of iron ore posting its 11th consecutive record.
Gold miner Newcrest Mining lost 23 cents to $40.50 on the back of a lower gold price.
Transport group Asciano says it has signed a new, five-year container contract with Danish shipping giant Maersk Line. Asciano shares were up 8 cents, or 4.9 per cent, at $1.70.
Retailer Woolworths rose 18 cents to $27.43 after reporting a 4.7 per cent lift in annual sales to $54.1 billion despite a challenging year characterised by falling prices, natural disasters and declining consumer sentiment.
Other retail stocks also were higher. Wesfarmers was up 58 cents, or 1.9 per cent, at $30.79, David Jones rose 5 cents, or 1.6 per cent, to $3.18, Myer gained 7 cents, or 3.2 per cent, to $2.44, while JB Hi-Fi was 30 cents higher, by 2 per cent, at $15.35.
Telstra shares were up 4 cents, or 1.3 per cent, at $3.08.
AAP, Reuters, with BusinessDay
Read more: http://www.theage.com.au/business/markets/shares-rally-on-us-debt-deal-hopes-20110720-1hnz1.html#ixzz1ScrSQW6G
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