Australian Stock Market Report –Midday 3/6/2013

Mid-session Report.

12.50pm.

After a great run here at home yesterday where the ASX 200 index closed 1.3% or 64points higher, European and UK markets rallied. Regained confidence in the US markets pushed the UK FSTE index to a 5 year high at the close of trade.

But the Big news story overnight was the US Dow Jones index breaking out and reaching a new record high or 14,286 point. The Dow rallied past its last key level hit back in the pre global financial crisis (GFC) era, back in Oct 2007.

The Dow Jones Index doubling its value in the last 4 years after bottoming out around 6,550 points back in March 2009.

Last night the US market received a boost from strong service sector data and higher metal prices, as well as the momentum from the record high being tapped. The Dow Jones also closed at a new record closing level of 14,254 points.

Today the Aussie market started off well with the All Ordinaries index (XAO) up 35 points at the open of trade. The banks and key insurance stocks led the charge higher in morning trade, with the energy stocks also building over time.

At 11.30am (ADST) the December Quarter 2012 economic growth figures (GDP) were released. The GDP read showed a lift of 0.6% in growth for the quarter in line with market expectations but below our own forecast of 0.8%, but with the added revision to the September Quarter 2012 numbers up from 0.5%to 0.7% basically in line with our expectations.

The GDP result helped the Aussie market build on its early gains and by lunchtime the All Ordinaries index (XAO) was up 48.6 points.

Almost all sectors are moved higher, while the S&P/ASX 200 Consumer Staples/ retail sector was slightly lower. Woolworths Limited (WOW) off 0.4% to $35.01 and its rival Wesfarmers Limited (WES) off 0.17% to $42.13.

The Financial are leading the charge with National Australia Bank (NAB) and Westpac (WBC) both 2% firmer while Commonwealth Bank (CBA) added 1.3% and ANZ Banking Group (ANZ) up by over 1.8%.

The mining sector was also higher with BHP Billiton (BHP), Australia's biggest listed company is adding over 1.4%, while Rio Tinto (RIO) slightly higher even after going ex-dividend this morning.

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