Australian Stock Market Leads - 02/24/2012

The Australian stock market is bound to benefit from the overnight gains posted by markets in the U.S. and Europe. The S&P 500 traded near 10-month highs and the Dow once again flirted within the 13,000 level.

Although there would still be some negative leads brought by the raging oil prices and the Australian political crisis, the equities and currency markets are set for some improvement and better yields on Friday's trading day.

According to IG Markets analyst Stan Shamu, with US markets once again approaching key levels, 'Dow 13,000', and the S&P edging up to its post- GFC high of 1370, we begin to wonder if the local market can finally break the 4300 barrier which it has failed to close above on numerous attempts. Some investors remain hesitant that these levels will trigger a bout of profit taking."

He adds that the rally in the U.S. trade was due to the promising housing report and the ease in unemployment claims data holding steady at four-year lows and beating market expectations.

Among the major averages, the Dow Jones Industrial Average was up 0.4% to close at 12986. The S&P was also 0.4% higher at 1363, while the NASDAQ climbed 0.8% to finish at 2957.

Overnight, the dollar's weakness helped support commodity prices of gold and crude oil.

Mr Shamu notes that this mild improvement in risk sentiment will bouy the sentiment in the today's Aussie market. Thus, a possible kick of at least 0.1% is seen at 4291 on Friday's open.

Some of the companies reporting today are Crown, Resolute Mining and Hastings Diversified Fund. On the economic front, we have RBA Governor Glen Stevens speaking this morning.

Morrison Securities Thursday's ASX Recap: (Feb. 23, 2012)

In other news, about 330 jobs may be at risk at BHP Billiton's Tasmanian manganese alloy plant as it undertakes a three-month review of the 50-year-old operation. BHP Billiton was down 18 cents at $36.23 while fellow mining giant Rio Tinto backtracked $1.02, or 1.49 per cent, to $67.51. The big four banks were down by between 0.24 per cent and 1.02 per cent, with National Australia Bank the worst performer. Steel maker and miner OneSteel surged for the third consecutive day in the wake of its first half results on Tuesday, in which it flagged an improved second half result and job cuts following a $74 million interim net loss. OneSteel was up 20 cents, or 21.05 per cent, at $1.15. The spot price of gold in Sydney was $US1,773.50 per fine ounce, up $US17.25 from Wednesday's local closing price of $US1,756.25. Preliminary market turnover was 2.01 billion shares worth $4.6 billion, with 491 stocks up, 540 down and 373 steady.

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