Overnight US stocks finished in a fresh 13-month high as energy and material sectors are boosted after the better-than-expected Japanese economy growth. The market was also inspired as Federal Reserve Chairman Ben Bernanke's said that interest rates would stay low. The US government data showed that retail sales rose 1.4 per cent in October, also exceeding market expectations.
Overnight the US stocks closed higher on the positive Alcoa earnings and better-than-expected weekly jobless claims and consumer spending. Investors were also encouraged by the US retailers' first same-store sales gains in more than a year.
Overnight the Dow index and S&P's 500 index posted their biggest falls in three months as the worse-than-expected manufacturing activity data in September and new jobless claims led to a broad sell-off. These figures overshadowed improvements in pending home sales, personal spending and construction spending, and dampened investors confidence on the economy recovery.
Wall Street ended its three-day rally after mixed economic data overnight. New claims for unemployment benefits in the US fell for the second consecutive week, but housing starts rose a less-than-expected 1.5 per cent compared with the prior month.
Wall Street overnight ended the losing streak and edged higher after the better-than-expected retail sales data. The good sales data in August to some extent eased the concerns over the key US employment gauge which is scheduled to release on Friday.
Wall Street fell for a third session despite a positive manufacturing data in August. The sell-off was caused by concerns over banks' outlook and fears about September, which was historically one of the market's weakest months.
US stocks closed slightly higher on a strong sign of recovery in US housing sector. The Commerce Department said on Monday that sales of new homes rose by 11% in June. Earning news dominated the market in recent trading sessions with most of the reports beating the expectation.
The Australian share market yesterday ended stronger despite the negative lead from Wall Street. The benchmark S&P/ASX200 was up 81.7 points, or 2.2 per cent, at 3817.3, while the broader All Ordinaries gained 79.0 points, or 2.1 per cent, to 3800.6. Today the local market could be buoyed by the rising commodities prices.
The Australian share ended slightly lower on Wednesday despite strong lead on Wall Street. The market is still seeking direction amid global volatility. The benchmark S&P/ASX 200 index was down 9.2 points, or 0.25 per cent, to 3668.2, while the All Ordinaries fell 5.9 points to 3627.2.
Yesterday, the Australian market finished in positive territory as the Wall Street's good performance this month fueled investors' confidence over a gradual recovery in the US. The benchmark S&P/ASX200 ended the day up 37.3 points, or 1.03 per cent, at 3646.6, while the broader All Ordinaries gained 40.1 points, or 1.13 per cent, to 3586.3.
