RTTNews - The Australian market ended sharply higher on Tuesday following gains on Wall Street, where financial stocks led the gains on expectations of a recovery in the financial sector. Positive domestic business confidence survey results also lifted market sentiment. Nevertheless, volume remained light, reflecting a lack of conviction in the upward move. Mining, bank and retail stocks advanced on expectation of higher demand and a global recovery.
In the U.S., positive comments on the performance of the financial sector by Meredith Whitney, who raised the rating for Goldman Sachs from Neutral to Buy and also saw value for investors in Bank of America, helped stocks stage a smart rally on Monday, led by financial stocks.
The Dow closed up by 185.16 points or 2.3% at 8,332, the Nasdaq moved up by 37.18 points or 2.1% to 1,793 and the S&P 500 rose by 21.92 points or 2.5% to 901.
The All Ordinaries Index opened unchanged from its previous close at 3,738 and surged ahead on the positive cues from Wall Street. Mining, banks and retail stocks led the gains. The index stayed in positive territory throughout the session and ended with a gain of 3.23% or 120.80 points at 3,859. The benchmark S&P/ASX 200 Index followed a similar trend and ended at 3,867, representing a gain of 3.5% or 129.6 points,
On the economic front, the latest survey from the National Australia Bank revealed that Business confidence in the country turned positive in June for the first time since December 2007. The business confidence index based on the survey stood at 4 in June compared to minus 2 in the preceding month.
Light sweet crude oil for August delivery ended the Asian trading session at $60.21, up 52 cents, after having ended the previous session in after ending Monday's session in New York at $59.69, down 20 cents amid volatile trading on demand concerns.
Metal stocks rallied after a modest rise in commodity prices in the international market. BHP Billiton gained 4.94%, Rio Tinto surged up 5.30%, Mincor Resources surged 10.91% and Fortescue Metals rose 3.15%.
Gold stocks ended in positive territory. Lihir Gold gained 1.41%, Newcrest Mining added 0.81% and Sino Gold Mining rose 2.75%.
Retailers advanced following the improvement in business confidence index. David Jones gained 3.50%, Harvey Norman advanced 2.27%, Woolworths added 1.64% and owner of Coles, Wesfarmers rose 3.35%.
Banking stocks advanced ended higher, capitalizing on the rally in the financial space in the U.S. overnight. Wall Street cues where financials led the gains. ANZ Bank gained 4.00%, Commonwealth Bank Australia advanced 4.30%, National Australia Bank soared 4.83% and Westpac Banking rose 3.91%.
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