MARKET TALK: S&P/ASX 200 Up 0.8%, May Ease - Trader

10th Jun 2010 01:40

0040 GMT [Dow Jones] S&P/ASX 200 opens 0.8% stronger, led by resource stocks after reports of strong Chinese export data helped boost market late in yesterday's session, with BHP (BHP.AU) up 0.8% at A$37.44, Rio Tinto (RIO.AU) up 1.3%, Woodside (WPL.AU) up 1.7%. Stocks, however, could ease on broader concerns about U.S., European growth prospects, with not much big money coming in, says Nick Burmester, head of equities sales at MF Global. "I think the Chinese news late yesterday probably caught a few people who are under-invested or short but there's not a lot of real money at play in this market," Burmester says. "A lot of it is short term trading positions." Says there's still a common view that commodities remain over-valued amid concerns on Europe austerity, growth in global economy. "There's no need to rush in is what the big institutions are saying to me this morning," Burmester says. Reckons investors will be watching to make sure actual Chinese export data released later today matches yesterday's reports. Whatever happens, suspects market to ease towards the close as caution restrains buyer enthusiasm. "The market has had a tendency to close weaker over the past month, both here and globally, so you could even see us close down." Banks holding firm, with Commonwealth Bank (CBA.AU) up 1.2%, Westpac (WBC.AU) up 0.8%. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 09, 2010 20:40 ET (00:40 GMT)