Market set to bounce back
Market set to bounce back

UPDATE 7.20am: The Australian sharemarket has opened higher, led by gains on Wall Street and higher commodity prices.

At 7.19am, the benchmark S&P/ASX200 index was up 27.5 points, or 0.62 per cent, at 4485.1 points, while the broader All Ordinaries index gained 26.4 points, or 0.59 per cent, at 4506.3 points.

On the ASX 24, the December share price index futures contract was 35 points higher at 4471 points, with 10,438 contracts traded.

RBS Morgans equities director Bill Chatterton said resources were leading the charge at open with gains across the sector.

“The whole resources sector has really had a wonderfully good open,” he said.

“The interest in a significant recovery in the US has helped, as has movement in base metal prices.”

Iron ore prices were up $US1 to $US120 overnight.

BHP Billiton shares gained 69 cents to $34.51 at open, Rio Tinto was $1.40 higher at $57.65 and Fortescue gained 12 cents to $4.11.

Positive data on consumer confidence and the manufacturing sector gave Wall Street a solid bump higher after Wednesday's flat reopening following the superstorm Sandy shutdown.

The Dow Jones Industrial Average finished solidly higher at 13,232.62, a gain of 136.16 points, or 1.04 per cent.

London's FTSE 100 index of top companies jumped 1.37 per cent to 5861.92 points, while in Paris the CAC 40 advanced 1.35 per cent to 3475.40 points and Frankfurt's DAX 30 gained 1.03 per cent to 7335.67 points.

Locally, in economic news, the Australian Bureau of Statistics releases the producer price index for September quarter, and the Housing Industry Association publishes its trades report for the September quarter.

National turnover was 269 million securities worth $604 million, with 350 stocks up, 169 down and 228 unchanged.

The West Australian

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