The Australian share market is trading higher, led by the big banks, after local investors were buoyed by a lift in markets in the United States.
On Wall Street in the US on Tuesday, stocks rose on the back of solid housing starts data and good earnings reports from Coca-Cola, Johnson & Johnson and others.
Lonsec senior client adviser Michael Heffernan said the Australian market had rebounded from recent losses given a turnaround in overseas markets and a slight recovery in the price of gold.
“The housing starts in the US were, I think, the highest since before the GFC (global financial crisis), so they’re on the right track,” Mr Heffernan said.
“That’s got to give a lot of confidence for their economy and the market.”
Mr Heffernan said local investors would probably take their cue over the next few days from corporate earnings reports in the US.
On the local bourse, in the resources sector at 1201 AEST, BHP Billiton was 38 cents lower at $31.77, after the global miner maintained production guidance for 2012/13 despite some weather-related disruptions.
Rio Tinto shed 91 cents at $54.07.
Gold miner Newcrest Mining firmed nine cents to $17.09.
Among the major banks, ANZ was 29.5 cents higher at $29.155, Commonwealth Bank gained $1.03 at $69.17, National Australia Bank improved 35 cents to $32.18, and Westpac was 21 cents richer at $31.71.
Among other stocks, fertiliser and explosives manufacturer Incitec Pivot was 3.5 cents lower at $2.855 after it said it will spend $US850 million ($A821.93 million) building a new ammonia plant in the US.
Tabcorp was steady at $3.30 after the wagering and keno firm said it will pay $20 million to have its Queensland keno licence extended to 2047, from 2022.
James Hardie shares were in a trading halt after the New Zealand Ministry of Education launched legal action against the building products company. James Hardie last traded at $9.77.
KEY FACTS
* At 1207 AEST on Wednesday, the benchmark S&P/ASX200 index was up 42.3 points, or 0.85 per cent, at 4,993.1 points.
* The broader All Ordinaries index was up 40.4 points, or 0.82 per cent, at 4,984.5 points.
* The June share price index futures contract was up 45 points at 4,991 points, with 16,648 contracts traded.
* National turnover was 647.6 million securities worth $1.68 billion.
