MARKET TALK: S&P/ASX 200 Up 2%; Fades Despite Strong Jobs

8th Jul 2010 04:20

0320 GMT [Dow Jones] S&P/ASX 200 up 2% at 4339 after fading from 7-week high of 4354.9 despite strong jobs data, which pushed AUD/USD up to 0.8744 from 0.8643. S&P/ASX 200 faded alongside U.S. stock index futures, with Fibonacci resistance near 4350 more or less intact, although index is well above support at 4300. "People are happy to see the market going up, but I don't think many people will be doing a complete reshuffle on today's movement," says RBS head of Sydney sales Justin Gallagher. "There's no question we have seen increasing comfort about the European bank stress tests and I thought the ICSC comments about U.S. retail sales were pretty extraordinary, considering all the other economic data we've seen out of the U.S." But he expects U.S. market could now take an optimistic track before Monday's earnings report from Alcoa and U.S. retail sales report next Wednesday. Cyclicals still leading broad-based gains, with major banks up 2.7%-3.7%, Macquarie (MQG.AU) up 4.7%, BHP (BHP.AU) up 1.8% (BHP.AU), Rio Tinto (RIO.AU) up 2.0%, Fortescue (FMG.AU) up 3.1%, Origin (ORG.AU) up 2.0%, Leighton (LEI.AU) up 3.0% and Harvey Norman (HVN.AU) up 4.1%. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 07, 2010 23:20 ET (03:20 GMT)