Australian shares have opened stronger as investors look to whether the United States will alter its massive economic stimulus program.
The US Federal Reserve early Thursday is expected to provide an update on its $US85 billion a month asset purchase program, known as quantitative easing.
IG markets analyst Evan Lucas said a clear direction from the US Fed would prompt bargain hunting by investors, leading to a winter rally on the local bourse.
“For the last three years, the ASX has had a massive correction at the start of winter before rallying all the way to the end of the year, and each time the winter rally has had a trigger,” Mr Lucas said.
“Whether it was plugging the holes in the leaky boat that was Greece, a ‘whatever it takes’ to stabilise the eurozone or global action against the GFC (global financial crisis) – tomorrow morning’s FOMC (Federal Open Market Committee) meeting has that feel about it.”
Shortly, after opening, the banks were mixed, with ANZ up 4.5 cents, or 0.16 per cent, to $28.42 and NAB 11.5 cents, or 0.39 per cent, higher at $29.86, but CBA down 26 cents, or 0.38 per cent, at $68.23 and Westpac eight cents, or 0.27 per cent, worse at $29.37.
In resources, market heavyweight BHP Billiton had found 24 cents, or 0.73 per cent, to $32.93, while diversified miner Rio Tinto had jumped 77 cents, or 1.43 per cent, to $54.32.
Whitehaven Coal was up 16 cents, or 7.58 per cent, to $2.27 on the back of news former billionaire Nathan Tinkler had sold off a chunk of his shares in the company.
KEY FACTS
* At 1017 AEST on Wednesday, the benchmark S&P/ASX200 index was up 20.5 points, or 0.43 per cent, at 4,834.9.
* The broader All Ordinaries index was up 21.4 points, or 0.45 per cent, at 4,816.0.
* The June share price index futures contract was 19 points higher at 4,839, with 43,850 contracts traded.
* 1029 AEST, national turnover was 186.6 million securities worth $471.2 million.
