(RTTNews) - The Australian market snapped 4-day losses and ended sharply higher in positive territory on Friday, rejoicing the positive economic data from the U.S which confirmed that the largest economy in the world is out of recession, recording 3.5% growth in GDP for the third quarter. Sharply higher closing in Wall Street also lifted the market sentiment on renewed optimism about global recovery.

The benchmark S&P/ASX200 Index surged up 68.50 points, or 1.50% to close at 4,643, while the All-Ordinaries Index ended at 4,647, representing a gain of 71.70 points, or 1.57%.

On the economic front, data released by the Reserve Bank of Australia revealed that the value of credit extended to the private sector in the country during September declined by a seasonally adjusted 0.2% compared to the previous month. However, on year-over-year basis, credit to the private sector rose 1.7%. The data further revealed that credit extended to the housing sector increased 0.7% month-over-month during September and was up 7.7% from the same period last year.

Light sweet crude oil futures for December delivery ended at $8.03 a barrel in electronic trading, up $0.16 per barrel from previous close at $79.87 a barrel in New York on Thursday.

Almost all the sectors witnessed positive trading with three out of 4 stocks in the index ending with gains from previous close.

Metals and mining stocks led the gains following sharp rise in commodity prices in the international market. BHP Billiton added 0.86%, Rio Tinto surged up 4.59%, Fortescue Metals rose 3.77%, Gindalbie Metals soared 6.63%, Iluka Resources gained 3.55%, Mincor Resources advanced 2.84% and Oz Minerals climbed up 6.67%.

Energy stocks also ended in positive territory after crude oil prices rose in the international market. Woodside Petroleum gained 2.16%, Santos rose 1.50% and Origin Energy climbed 2.55%. However, Oil Search bucked the trend and edged down 0.34%.

Gold stocks ended mixed. Lihir Gold Mining rose 2.35% and Sino Gold Mining climbed 4.23%. However, Newcrest Mining bucked the trend and ended in negative territory with a loss of 0.49%.

Property related stocks also advanced. GPT Group added 1.74%, Mirvac Group soared 6.03%, Stockland climbed 6.50% and Westfield Group advanced 1.32%.

Financial stocks ended in positive territory on US economic data and hopes of recovery. ANZ Bank added 0.92%, Commonwealth Bank of Australia advanced 1.55%, National Australia Bank rose 2.75% and Westpac Banking Corp. ascended 1.03%.

In the U.S., stocks rose by substantial margins on Thursday, as the day’s upbeat third quarter GDP report generated risk appetite and drove traders to fund a rally in the stock market. The major averages all finished firmly in positive territory, partly offsetting their recent losses. The Dow closed up by 199.89 points or 2.1% at 9,963, the Nasdaq advanced by 37.94 points or 1.8% to 2,098 and the S&P 500 rose by 23.48 points or 2.3% to 1,066.

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

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