(RTTNews) - The Australian market was trading sharply higher on Monday after Wall Street put in a strong performance on Friday. Financial stocks were higher in early trade, but resources were lower on weaker commodity prices. At 8:43 p.m. ET, the benchmark S&P/ASX 200 index was up 77.3 points or 1.6% at 5,008.7, extending Friday’s 1.2% gains. The broader All Ordinaries index was advancing 73.5 points or 1.5% to 5,083.7.

In the currency market, the Australian dollar opened more than one cent weaker on lower commodity prices. The local unit opened at US$0.8653-0.8657 compared to Friday’s close of US$0.8786-0.8790.

On Friday, the U.S. market finished with sharp gains, as oil prices tumbled and Federal Reserve Chairman Ben Bernanke said inflation pressures are likely to moderate. The Dow jumped 1.73%, the broader S&P 500 rose 1.13% and the Nasdaq climbed 1.44%.

Oil prices tumbled $6.59 a barrel or 5.43% on Friday, the biggest one-day percentage plunge in nearly four years, following a rebounding dollar and a Russian troop pullback from Georgia. The contract for October delivery settled at US$114.59 a barrel. In the Asian session Monday, oil was down 37 cents to US$114.22 by 8:38 p.m. ET.

On the economic front, traders have little economic data to digest on Monday.

In the banking space, Commonwealth Bank of Australia and Westpac Banking Group rose 2.3% each, National Australia Bank surged 3.0% and ANZ Banking Group jumped 2.6%. Investment bank Macquarie Group gained 2.2% and takeover target St George bank advanced 1.9%.

Among Babcock group of companies, Babcock & Brown Ltd. Rose 4.4%, Babcock & Brown Power surged 8.9% and Babcock & Brown Wind Partners jumped 4.8%.

In the resources sector, index leader BHP Billiton slipped 0.2%, but Rio Tinto climbed 0.6%. Gold miners were weaker, with Lihir Gold falling 1.7% and Newcrest Mining losing 1.8%. Energy stocks were mixed after oil prices plunged on Friday. Woodside Petroleum dropped 0.9% and Oil Search fell 1.8%, while Santos rose 0.6%.

Among retailers, David Jones jumped 2.8%, Woolworths gained 2.4% and Coles owner Wesfarmers advanced 2.0%.

Centro Properties Group plunged 11.4% after the company said that shareholders may be affected if it offers hybrid securities to win an extension on as much as A$6.6 billion of debt.

Ramsay Health Care climbed 5.3% after its annual profit including one-offs fell 14%, though core profit met expectations.

Electronic retailer, JB Hi-Fi added 0.8% after the company denied a media report that it was in talks about a possible takeover bid from Australia’s top retailer, Woolworths.

Goodman Fielder, Australia’s top baker, plummeted 5.3% after the company reported a 6% fall in annual profit.

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Posted in Categories: Australia, Economy, Releases, USA.

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