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November 24, 2010 21:55 ET (02:55 GMT) critical support levels on Wednesday
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Date Posted: 24/11/10 21:39:14
Australia Shares Midday: Up 0.1% After Offshore Rally
25/11/2010 1:55PM
SYDNEY (Dow Jones)--The Australian share market is slightly higher Thursday in quiet trading before the U.S. Thanksgiving holiday, with materials and energy stocks supporting the market along with Australia and New Zealand Banking Group and Telstra.
At 0230 GMT, the benchmark S&P/ASX 200 was up 0.1% at 4590.3 after rising to 4607.2.
Much of the rise on Wall Street was anticipated yesterday as the S&P/ASX 200 fell only 0.1% despite a 1.4% fall in S&P 500 the previous night.
However, the local index is looking better on the charts after bouncing strongly from critical support levels on Wednesday, according to Dow Jones Newswires technical analysis.
The 200-day moving average is offering immediate resistance near 4613.0.
Overnight, the S&P 500 rose 1.5% after U.S. weekly jobless claims and consumer sentiment data beat expectations, although durable goods and new home sales were weak.
Stronger-than-expected consumer sentiment fuelled hopes of strong U.S. retail sales on the crucial 'black Friday' after Thanksgiving.
"People are getting more bullish on U.S. economic recovery as the data improves," said MF Global Senior Institutional Trader Nick Burmester, adding that "conclusive signs of U.S. economic strength could eventually cause U.S. dollar strength, which could weigh on commodity prices".
Burmester added that the course of monetary policy and economic growth in China was potentially a bigger concern for global equity markets than European sovereign debt.
But traders are generally hopeful of investors buying risk assets like equities and commodities before year end.
Energy, materials and financials are leading broad-based gains, with Woodside Petroleum up 0.3 at A$40.87 Tinto up 0.7% at A$83.06 and ANZ Bank up 1.4% at A$22.59.
Lynas is up 8.5% at A$1.66 after announcing a rare-earths supply deal with Japan yesterday.
Sojitz Corp will partner with Lynas to supply 80,000-90,000 metric tons--70% of its planned production capacity--of rare earths to Japan over 10 years.
ANZ is outperforming after Southern Cross reiterated its Buy recommendation on the stock.
Telstra is up 1.4% at A$2.82 after RBS upgraded the stock to Buy after the Australian government reached a deal with independent senators that should allow it to pass its National Broadband Network legislation, clearing the way for Telstra to announce capital management plans for the A$11 billion in NBN compensation it's due to receive from the government.
-By David Rogers, Dow Jones Newswires: 61-2-8272-4693: david.rogers1@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=mVKII5ha6f8pwiN47B43tw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 24, 2010 21:55 ET (02:55 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
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