(RTTNews) - The Australian stock market was trading higher Wednesday, following modest gains overnight on Wall Street after release of the U.S. Federal Reserve policy board minutes. At 8:17 p.m. ET, the benchmark S&P/ASX 200 index was gaining 71 points or 1.88% to 3,813, after closing 1.51% higher on Tuesday. The broader All Ordinaries index was advancing 69 points or 1.88% to 3,758.

In the currency market, the Australian dollar opened higher as firmer commodities prices boosted the high-yielding currency. The Aussie opened at US$0.7249-0.7253, up from Tuesday’s close of US$0.7115-0.7120.

On Wall Street, U.S. stocks ended Tuesday’s choppy trading session higher, as investors responded to a mixed bag of economic news and the remarks by President-elect Barack Obama. He said that he expects to inherit a $1 trillion federal deficit, a burden that will likely extend into the next few years. The Dow closed up 62 points or 0.69% at 9,015, the Nasdaq gained 24 points or 1.50% to close at 1,652, and the S&P 500 advanced 7 points or 0.78% to finish at 935.

On the economic front, the Australian Bureau of Statistics’ Retail Trade Trends Data for November showed that retail sales in Australia rose in November by a seasonally adjusted 0.4%. Trend retail sales also increased 0.1% on month.

Among banking stocks, Commonwealth Bank of Australia was down 0.71%, while National Australia Bank rose 1.16%, and ANZ Banking Group gained 1.30%. Investment bank Macquarie Group climbed 8.21%, while Westpac edged down 0.29%.

In the resources sector, index leader BHP Billiton advanced 4.32% and Rio Tinto climbed 8.43%, as Rio’s aluminum arm stood to gain from planned output cuts by top U.S. aluminum producer Alcoa. Gold miners were mixed, after gold closed modestly higher on Tuesday. Sino Gold gained 3.81%, Newcrest Mining fell 2.18% and Lihir Gold added 1.89%.

On Tuesday, crude oil futures for February delivery closed marginally lower amid fresh signs of the U.S. recession deepening, offsetting concerns over continuing tensions in the Middle East. Meanwhile, natural gas shipments to Europe were reduced amid the ongoing dispute between Russia and Ukraine. Traders also awaited the release of Energy Information Administration’s weekly inventory data, which is released every Wednesday. Crude hit as high as $50.47, topping $50 for the first time since Dec. 1.

Oil closed down $0.23 at $48.58 a barrel on the New York Mercantile Exchange on Tuesday, after hitting an intraday low of $47.60 and a high of $50.47. In the Asian session Wednesday, crude was down $0.13 at $48.45 in electronic trading at 7:23 p.m. ET.

Among energy stocks, Oil Search gained 1.52%, Woodside advanced 2.62%, and Santos rose 1.85% after the oil and gas explorer signed a $US585 million contract with CITIC Pacific Mining to supply gas to the Sino Iron project in Western Australia.

In the retail sector, David Jones added 1.97%, Woolworths edged up 0.19%, and Coles’ owner Wesfarmers advanced 3.05%.

Shares of energy explorer Innamincka Petroleum have gone into a trading halt, the company saying it is in negotiations to farm out some of its interests.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Australia, Eurozone, Releases, Stocks, UK, USA.

Subscribe by RSS Subscribe by Email