MARKET TALK: S&P/ASX 200 Up 1.6% On Broad-Based Gains

23rd Jul 2010 01:41

0041 GMT [Dow Jones] S&P/ASX 200 up 1.6% at 4443.3, hits 5-day high of 4448.4 on broad-based gains after Wall Street surged on above-consensus earnings reports and improved guidance from growth bellwethers such as Caterpillar, 3M and UPS. In resources, BHP (BHP.AU) up 1.8%, Rio Tinto (RIO.AU) up about 1.8% and in the energy sector, Woodside (WPL.AU) up 1.9% and Santos (STO.AU) up 1.9% after commodity prices surged. Woodside's 2Q production fell 10%, in line with expectations, while 2010 production guidance was unchanged. In financials, major banks are up 1.6%-2.2%, while in the industrial sector, Leighton (LEI.AU) up 2.5%. "We've certainly had a lot of good results from major U.S. cylicals, but Asia is just building in the offshore gains, without doing anything excessive," says Shaw Stockbroking head of trading Jamie Spiteri. "The Australian dollar and leading components of our share market have been well supported. But we're unlikely to see a pickup in activity before the Australian earnings period and the Australian election." ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 22, 2010 20:41 ET (00:41 GMT)