MARKET COMMENT: S&P/ASX 200 +0.8% As Financials Lead Broad Recovery
March 14 2013 - 8:20PM
Dow Jones News
2350 GMT [Dow Jones] Australia's S&P/ASX 200 is up 0.8% at
5074.2 as financials lead a broad-based recovery after
lower-than-expected U.S. jobless claims data further bolstered the
improving U.S. economic outlook and pushed the S&P 500 up 0.6%
to a 5 1/2 year high. Major banks are up 0.9%-1.2%, with AMP
(AMP.AU), QBE (QBE.AU) and Macquarie (MQG.AU) up 1.1%-1.6% after
Thursday's falls. Materials stocks are lagging after spot iron ore
fell 4.4%, but BHP (BHP.AU) is outperforming its ADR's equivalent
close. "The selloff was overdone yesterday," says Macquarie Private
Wealth investment adviser James Rosenberg. "There is still a lot of
interest in stocks, but there's a lot of caution as well. People
are substantially more comfortable with risk and risk assets, but a
lot of people think it's run a bit hard." He says investors should
be encouraged by recent signs of domestic and U.S. economic
recovery, and the draft statement from European leaders that they
may give countries such as France, Spain and Portugal more time to
lower fiscal deficits. The 20-day moving average and former uptrend
line offer technical resistance at 5070/5080, and range support is
indicated at 4975.9. (david.rogers1@wsj.com)
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