The share market has opened strongly on comments by the US Federal Reserve suggesting tapering of its stimulus program won’t occur until next year.
Janet Yellen, the nominee to lead the US Federal Reserve, said the country’s unemployment rate of 7.3 per cent remains too high and reflected an economy running “far short” of its potential.
That signalled her support for the central bank’s current $US85 billion ($A91.67 billion) a month asset-buying operation.
IG market strategist Evan Lucas said that support was a major influence on early trading on the local market.
“We are probably going to see risk do quite well … and this morning banks are recovering already because with increased liquidity people are chasing yield,” he said.
After several days of falls, the big four banks posted early gains.
Westpac was up 22.5 cents to $32.495, ANZ was up 25 cents to $31.69, National Australia Bank had added nine cents to $33.74 and Commonwealth Bank was 19.5 cents higher at $76.505.
Among the miners, BHP Billiton was down 19 cents at $37.44, Rio Tinto had gained six cents to $64.69 and Fortescue Metals was four cents higher at $5.81.
James Hardie was a standout performer, adding $1.45, or 13.9 per cent, to $11.89 after a strong rise in first half profit.
KEY FACTS
* At 1045 AEDT on Thursday the benchmark S&P/ASX200 index was up 22.5 points, or 0.41 per cent, at 5,341.7 points.
* The broader All Ordinaries index was up 22.3 points, or 0.42 per cent, at 5,339.8 points.
* The December share price index futures contract was 18 points higher at 5,354 points, with 34,482 contracts traded.
* National turnover was 330 million securities worth $654 million.
