MARKET TALK: S&P/ASX 200 Up 0.3% On Materials Strength

21st Jul 2010 01:49

0049 GMT [Dow Jones] S&P/ASX 200 up 0.3% at 4415.7 after hitting 3-day high of 4435.6, where it found resistance from a downtrend line drawn off the April peak. Early rise follows moderate gains on Wall Street, with materials leading broad-based gains in cyclicals. BHP (BHP.AU) up 1.8%, Rio Tinto (RIO.AU) up 2.7%, OZ Minerals (OZL.AU) up 2.2%, James Hardie (JHX.AU) up 1.9%, after better-than-expected building approvals sparked optimism about the U.S. economy. In financials, major banks up 0.3%-0.5% and Macquarie (MQG.AU) up 0.8%. Defensives generally weak, with Woolworths (WOW.AU) down 2.0% on disappointing 4Q sales. "I think the Australian market will hold these gains and I think it probably can improve further today," says Patersons private client adviser Peter Morgan. "But caution prevails in the equities market. People are too scared to commit more cash to the market, whether it's because of European debt worries or a possible double dip recession in the U.S." ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 20, 2010 20:49 ET (00:49 GMT)