The Australian share market is higher after Wall Street lifted on signs the US economy is bouncing back.
US stocks rose after Citigroup’s first-quarter earnings surpassed analysts’ forecasts and the US March retail sales jumped 1.1 per cent – its largest gain in more than a year.
The dual good news had overshadowed ongoing concerns about high-growth tech and biotech stocks, Bell Potter Securities senior adviser Stuart Smith said.
“Although volume is down on the Australian share market because of the Easter holiday season, we are following the New York market,” he said.
“Concerns about the high momentum stocks did scatter the pigeons, the short-termers in other words, but the market is now back on track.”
Locally, the financial and mining sectors were up.
Among the major banks, ANZ was 22 cents higher at $33.56, Westpac was up 22 cents at $34.37, National Australia Bank had added 23 cents to $35.11 and Commonwealth Bank had lifted 40 cents to $76.91.
In the resource sector, Rio Tinto had gained 22 cents to $63.48 despite producing and shipping less iron ore during the first three months of 2014 due to bad weather, compared with the last quarter of 2013.
BHP Billiton was up 40.5 cents at $37.765 and Fortescue Metals was six cents higher at $5.34.
Coca-Cola Amatil had gained 10 cents to $9.16 despite ratings agency Standard and Poor’s downgrading the beverage giant’s credit rating in the wake of a slide in earnings.
Other consumer related stocks also rose. Woolworths gained 36 cents to $36.01, and Wesfarmers added 41.5 cents at $42.445.
KEY FACTS
* At 1200 AEST on Tuesday the benchmark S&P/ASX200 index was up 37.4 points, or 0.70 per cent, at 5,396.3 points.
* The broader All Ordinaries index was up 36.3 points, or 0.68 per cent, at 5,389.9 points.
* The June share price index futures contract was 41 points higher at 5,386 points, with 16,649 contracts traded.
* National turnover was 88 million securities worth $198 million.