MARKET TALK: S&P/ASX 200 Up 0.7%; Hits Fresh 4-Week High

27th Jul 2010 01:44

0044 GMT [Dow Jones] Australia's S&P/ASX 200 up 0.7% at 4516.7, hits fresh 4-week high of 4520.3, after S&P 500 rose 1.1% on above-consensus new home sales data and improved guidance from economic growth bellwether FedEx. Financials leading broad gains, with major banks up 0.7%-1.6%, led by Westpac (WBC.AU), after it issued A$3 billion of debt. QBE (QBE.AU) down 1.4% after yesterday's profit warning, while IAG (IAG.AU) down 2.9% after flagging 50% fall in FY10 profit, though insurance margin, gross written premium expected to be in line with guidance and CEO confident performance will "improve significantly" in FY11. BHP (BHP.AU) up 0.3%, Rio Tinto (RIO.AU) up 0.7% after base metals surged, while Wesfarmers (WES.AU) up 1.2% after Credit Suisse upgraded on strong results yesterday. Short covering boosting the overall market, though traders say economic concerns could reemerge with U.S. durable goods data due Wednesday and GDP due Friday. "Volumes are still pretty light, so there's a lack of conviction on Wall Street," says RBS head of sales Justin Gallagher. "People are trying to read things positively and the appetite for risk is certainly improving. If that continues after the reporting season and the election, there will be more reason to feel comfortable about re-entering this market, but I think there will still be an element of caution, particularly going into U.S. economic data this week." (DWR) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 26, 2010 20:44 ET (00:44 GMT)