The benchmark share index was trading nearly one per cent higher early on Tuesday, led by gains in banking and energy stocks.
“We are seeing a holding pattern at the moment. There has been ongoing support for banks and yield stocks as well as the energy sector,” CMC Markets chief market analyst Ric Spooner said.
Earlier, US stocks ended a two-day losing streak, with the Dow Jones Industrial Average ending 123 points higher, helped by gains in tech stocks.
That translated into a firm start in the local market, with investors ignoring a continued slump in oil prices.
Energy stocks were among the best performers, with Woodside, Santos, Oil Search and APA Group all trading nearly two per cent higher.
Shares in the big banks were also trading positive, with Commonwealth Bank up 44 cents at $82.36, Westpac up four cents at $32.30, NAB gaining 21 cents to $29,03, and ANZ shares climbing 10 cents to $26.89.
Among the big miners, BHP Billiton, Rio Tinto and Fortescue were all trading lower, despite iron ore prices edging above $40 a tonne, and copper prices hitting a five-week peak.
At 10.13am (AEDT) on Tuesday, the benchmark S&P/ASX200 index was up 45.5 points, or 0.89 per cent, at 5,154.5, while the broader All Ordinaries index was up 45.3 points, or 0.88 per cent, at 5,203.1.
On the ASX 24, the March share price index futures contract was up 44 points at 5,113 with 6,462 contracts traded.
Locally on Tuesday, the ANZ-Roy Morgan weekly consumer confidence survey is released.
In Australia, the market on Monday close almost flat following a small rally in mining and energy stocks.
The benchmark S&P/ASX200 index was up 2.3 points, or 0.05 per cent, at 5,109.0 points.
The broader All Ordinaries index was up 1.3 points, or 0.03 per cent, at 5,157.8 points.
NEW YORK – US stocks are on track to end a two-day losing streak on Monday, helped by gains in tech stocks, with investors ignoring a continued slump in oil prices.
Trading volumes are expected to be relatively light this week, with stock markets operating a shortened session on Thursday and closing on Friday for Christmas.
Oil prices have been sliding under continued pressure from global oversupply and tepid demand.
The S&P energy sector was headed for its fourth day of decline.
“It’s going to be interesting to see if this market can hold up and divorce itself, at least for today, from the price of oil,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
LONDON – European shares fell on Monday, giving up their earlier gains as losses in Spain and a rise in the euro weighed on the region’s stock markets.
Spain’s IBEX equity index was the worst performer, falling 3.6 per cent after an inconclusive Spanish election result, while Spanish 10-year government bond yields also hit one-month highs after the election.
Neither Prime Minister Mariano Rajoy’s conservatives nor left-wing parties won a clear mandate to govern in Sunday’s poll, casting further uncertainty over the outlook for Spain’s reform program and broader economy. Talks on forming a coalition government are expected to take weeks.
HONG KONG – Asian share markets have advanced after a lacklustre start, defying a dive on Wall Street, and the price of Brent crude threatened to plumb lows last seen in 2004 on renewed worries over a global oil glut.
“As we head into the final two weeks of the year, the limited year-end liquidity will be something to keep a watch on,” Bernard Aw, market strategist at IG in Singapore, wrote in a note.
“Today, we have not much in the way of market-moving data for Asia, so market players will likely be sitting on the sidelines and trying to search for clarity.
BRUSSELS – The European Union has extended economic sanctions against Russia until the end of July next year after the deadline for raising objections passed without any member state challenging the decision.
MADRID – Spain has entered the political unknown after the most fragmented national election in its history, as old and new parties fire the first salvos in coalition talks that are likely to be long and complex.
COLUMBUS – JPMorgan Chase has agreed to pay $US150 million ($A209 million) to public pension funds and individuals hurt by its $US6 billion so-called London Whale trading loss.
DETROIT, Michigan – German carmaker BMW is facing a $US40 million ($A56 million) penalty from US safety regulators for moving too slowly to fix Mini brand cars that didn’t pass federal crash tests.
ENERGY
Global oversupply concerns dragged Brent crude oil prices down on Monday to their weakest level in more than 11 years, but Wall Street gained broadly as investors went shopping after two days of sharp declines.
Across the board, markets remained locked in a holding pattern.
“The market is waiting for the next announcement,” said Tyche Capital Advisors senior research analyst John Macaluso.
“The equity markets are waiting on crude oil, and crude oil is waiting for a bounce before shorts will come back into the market.”
Crude short-sellers will be reluctant to return before US crude recovers to $US35.50, he said.
The market, which has been plagued this year by an oversupply of crude oil and weakening demand, is continuing to face pressure going into 2016.
PRECIOUS METALS
Gold futures prices are up than one per cent as weaker than expected US data and uncertainty about how fast the Federal Reserve will tighten interest rates next year weighed on the US dollar.
Liquidity is expected to drop as trading enters the last two weeks of the year, when many will be away from their desks for the Christmas and New Year holiday season.
“[A] good short-covering rally continues for the short holiday week,” said George Gero, precious metals strategist for RBC Capital Markets in New York.
“The double bottom of the December 3 (low) below $US1,050 may become a technical factor.”
BASE METALS
Copper hit a five-week peak on Monday on signs that supplies could tighten and as the dollar slipped, although worries that Chinese economic growth will remain muted next year kept gains in check.
The US dollar fell versus a currency basket, making greenback-priced metals cheaper for non-US investors.
In China, nine large copper smelters agreed they could deepen planned production cuts next year beyond 350,000 tonnes proposed earlier if prices and profitability deteriorate.
Also, China’s top integrated copper producer Jiangxi Copper and Chilean miner Antofagasta Minerals also agreed to 2016 treatment and refining charges nine per cent lower than this year’s fees.
“These one off events to take supply off the market … (have) made short speculators nervous (but) without a major pickup in Chinese demand it doesn’t look like copper will move much higher,” said Carsten Menke, analyst at Julius Baer.
ASX stocks to watch on Tuesday
CWN – CROWN RESORTS – up 48 cents, or 4.14 per cent, at $12.08: Billionaire casino mogul James Packer has stepped down as a director of Crown Resorts, effective immediately, but will remain as co-chairman of Crown’s joint venture, Melco Crown Entertainment, which operates casinos in Macau and Manilla.
FLT – FLIGHT CENTRE – down 19 cents, or 0.51 per cent, at $37.00: After making a $US28 million ($A39 million) offer to acquire US-based youth and student travel specialist StudentUniverse.com, Flight centre has secured a 70 per cent interest in BYOjet.com.
WFD – WESTFIELD CORPORATION – down 12 cents, or 1.24 per cent, at 9.58: Shopping centre operator Westfield Corporation has completed the sale of five malls in the United States for $US1.1 billion.
AAP
