MARKET COMMENT: S&P/ASX 200 Recovery May Continue Pre-FOMC Outcome
19 June 2013 - 10:20AM
Dow Jones News
2350 GMT [Dow Jones] Australia's S&P/ASX 200 is poised to
continue recovering before a two-day FOMC meeting concludes
Wednesday, with U.S. equities, iron ore and crude oil providing
positive leads for the Australian market. IG strategist Evan Lucas
tips a 0.8% opening rise to 4851, which would see the domestic
bourse at a 2-week high, and 4.1% above the 5-month low of 4658.6
struck last Thursday. With the S&P 500 up 0.8%, spot iron ore
up 2.3%, and the Australian dollar down 0.8%, BHP ADRs equivalent
close at A$33.07 suggests the market heavyweight should rise about
1.1%. Still, the resources sector is likely to be mixed, after spot
gold fell 1.2% and LME copper declined 1.1%. AUD/USD weakness could
spark a rebound in non-mining offshore income earners like CSL
(CSL.AU), QBE (QBE.AU) and Brambles (BXB.AU), and banks may
outperform after a strong intraday recovery. However, much of the
focus today will be on the News Corp (NWS.AU) demerger, with the
demerged News Corp (NNC.AU) and Fox (NWS.AU) due to start trading
today. Index last 4814.4. (david.rogers1@wsj.com)
Write to Shani Raja at shani.raja@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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