The Australian market was higher in early trade on Tuesday after Wall Street posted a small gain overnight. Alcoa kicked off the US earnings season with a better-than-expected report and it also raised its forecast for the metal consumption this year. The local market today rose more than 0.3 per cent shortly after the market opened.
Emeco Holdings Limited
Overnight Wall Street was lower for a second consecutive session on a weak home sales report. The National Association of Realtors said sales of existing homes fell 2.7 per cent in August to an annual rate of 5.10 million units, breaking a string of four increases in six months. The surprise drop in home sales raised more concerns over the economy recovery strength.
US stocks closed nearly unchanged Wednesday despite a stronger than expected increase of new home sales and a jump in durable goods orders. The market responded to the positive data with a shrug, as investors remained cautious and took their profits after rallies.
Wall Street finished higher in choppy trade as the upbeat economic data in Europe offset the news of disappointing retail sales in US. Wal-Mart's second-quarter earnings, above analyst's expectations, also helped to lift the market.
Australian shares market yesterday was buoyed by the news Rio Tinto reached a better than expected iron ore price agreement with Japan's Nippon Steel. The benchmark S&P/ASX 200 index gained 50.5 points, or 1.4 per cent, at 3788.4, while the broader All Ordinaries index rose 46.3 points, or 1.2 per cent, to 3781.6.