MARKET TALK: Strong Open For S&P/ASX 200

11th Jun 2010 01:51

0051 GMT [Dow Jones] The Aussie market came out of the gates with broad based gains early, lifting the S&P/ASX 200 by 61.2 points to 4496.5. "I would expect it to hang in there," RBS Head of Sydney Sales Trading Justin Gallagher says. "I would be surprised to see us go much higher." The market's taking its cues from a strong performance in the U.S. overnight--the Dow was up 2.8%, Nasdaq up 2.8% and S&P 500 added 3%--and on a raft of positive European news. Now traders are waiting for Chinese inflation, industrial production and retail data due out 0200 GMT. "If China data is good, then I think the market will be pretty happy to continue the push into the weekend in pretty strong shape," Gallagher says. "If the China data shows a few cracks, a bit more skepticism may creep into the market ahead of that U.S. data." U.S. retail sales data due out tonight. Gallagher says financials and resources stocks are benefiting more than defensives, with Westpac (WBC.AU) up 2.2%, National Australia Bank (NAB.AU) up 1.1%, Commonwealth Bank (CBA.AU) up 1.5%, ANZ (ANZ.AU) up 1.3%. BHP (BHP.AU) up 2.2% and Rio Tinto (RIO.AU) up 1.7%. "Appetite for risk is certainly back," he says, "for today anyway." ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 10, 2010 20:51 ET (00:51 GMT)