RTTNews - The Australian market ended in positive territory extending its gain for the 11th consecutive session on increasing optimism about recovery after Wall Street ended higher following a late session modest recovery. Financials led the gains, while metals and oil stocks ended mixed.
In the U.S., stocks ended in positive territory with marginal gains led by a modest rally in late session, characterized by low volumes after a report that showed an increase in new home sales boosted optimistic expectations of a recovery in the world's largest economy.
A report released by the Commerce Department revealed that new home sales jumped by 11% in June, the sharpest increase in nearly nine years. According to the report, new home sales rose to an annual rate of 384,000 in June from the revised May rate of 346,000. Economists had expected sales to rise to 352,000 from the 342,000 originally reported for the previous month.
Traders also digested positive earnings from RadioShack (RSH), Tellabs (TLAB) Corning (GLW) Verizon (VZ) and Honeywell (HON).
The Dow closed up by 15.27 points or 0.2% at 9,109, the Nasdaq climbed by 1.93 points or 0.1% to 1,968 and the S&P 500 rose by 2.92 points or 0.3% at 982.
The All Ordinaries Index opened slightly higher at 4,150 compared to its previous close at 4,148 and moved higher following Wall Street cues. The index remained above the unchanged line throughout the session despite trimming some gains on profit taking and ending up 26.20 points, or 0.63% at 4,174. The benchmark S&P/ASX 200 Index also followed a similar trend and ended at 4,170, representing a gain of 29.90 points, or 0.72%.
Light sweet crude oil for September delivery ended the Asian trading session at $68.47, up $0.09 from its previous close in New York at $68.38 a barrel on Monday.
Financials led the gains on increasing hopes of recovery. National Australia Bank, which was under selling pressure last week after raising funds by selling shares at a discount, gained 2.90%, Westpac Banking rose 2.77% and ANZ Bank edged up 0.29%. However, Commonwealth Bank of Australia bucked the trend and slipped 0.37% on profit taking.
Mixed trend was witnessed among metals, with BHP Billiton adding 0.45%, while Rio Tinto lost 0.57%. Among others, Fortescue Metals dropped 1.79%, Gindalbie Metals slumped 5.46% and Mincor Resources lost 2.44%. However, Minara Resources gained 5.38% and Oz Minerals advanced 0.87%. Macarthur Coal, the world's biggest exporter of pulverized coal, gained 4.10%.
Gold stocks also ended mixed. While Lihir Gold edged up 0.72% and Sino Gold gained 1.10%, Newcrest Mining ended in negative territory with a loss of 1.04%.
In the oil space, Woodside Petroleum edged up 0.07% and Oil Search Ltd rose 3.10%, but Santos bucked the trend and shed 0.20%.
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