By RTT News, October 14, 2013, 09:46:00 PM EDT
(RTTNews.com) - The Australian stock market is trading firm on Tuesday, with investors picking up stocks amid hopes the U.S. lawmakers will end the budget and debt ceiling impasse before the deadline. Hectic buying in the mining space on the back of firmer commodity prices is also aiding the surge in the market.
The benchmark S&P/ASX 200 index, which rose to 5,266.9, is currently trading at 5,254.8, up 46.9 points or 0.9 percent from its previous close. The broader All Ordinaries index is up 47.7 points or 0.9 percent at 5,254.2.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac (WBC) are up 0.5 to 1 percent. Bendigo & Adelaide Bank is up 0.7 percent, while Bank of Queensland is trading higher by 2.3 percent.
Among top miners, BHP Billiton (BHP) is up 1.2 percent, Rio Tinto (RIO) is trading 1.7 percent higher, Fortescue Metals is up 3.3 percent and Newcrest Mining is adding 0.7 percent.
Carsales.Com is up 4 percent. Seek, PanAust, Regis Resources, Crown and Stockland are trading higher by 2.5 to 3.2 percent. Asciano, ALS, Santos, Henderson Group, James Hardie Industries, Insurance Australia Group, Challenger and Twenty-First Century Fox Inc. are trading higher by 1.5 to 2.5 percent.
Meanwhile, Echo Entertainment is trading lower by over 5 percent, Whitehaven Coal is down 2.5 percent and Iluka Resources is losing about 2 percent.
On the economic front, the total number of new motor vehicle sales in Australia was down a seasonally adjusted 0.1 percent in September compared to the previous month, the Australian Bureau of Statistics said on Tuesday - standing at 94,150. That follows the 0.8 percent increase in August.
By category, sales of passenger vehicle fell 1.2 percent, while sports utility vehicles dipped 1.0 percent and other vehicles jumped 4.0 percent.
By region, sales in Tasmania surged 17.9 percent, followed by Western Australia (1.0 percent) and South Australia (0.9 percent). Over the same period, sales in the Northern Territory dropped 8.4 percent. On a yearly basis, new motor vehicle sales were down 3.5 percent following the 0.2 percent gain in the previous month.
In the currency market, the Australian dollar opened higher against the U.S. dollar amid hopes of a resolution to the U.S. political stalemate over the looming debt ceiling negotiations. In early trades, the local unit was quoting at US$0.9501, up from Monday's close of US$0.09467.
On Wall Street, stocks ended on a firm note Monday, after coming under pressure early in the session. The markets benefited from renewed optimism about lawmakers reaching an agreement to end the latest fiscal crisis.
The major averages moved roughly sideways going into the close, hovering firmly in positive territory. The Dow rose 64.2 points or 0.4 percent to 15,301.3, the Nasdaq advanced 23.4 points or 0.6 percent to 3,815.3 and the S&P 500 climbed 6.9 points or 0.4 percent to 1,710.1.
Major European markets turned in a mixed performance on Monday. While the German DAX index closed just below the unchanged line, the French CAC 40 index inched up by 0.1 percent and the U.K.'s FTSE 100 index gained 0.3 percent.
U.S. crude oil ended higher on Monday, mostly on news of a possible deal on the budget and debt ceiling with President Barack Obama all set to meet Congressional leaders later in the day. Nonetheless, the gains were capped after data from China showed inflation to have climbed with exports declining.
Crude for November delivery gained $0.39 or 0.4 percent to close at $102.41 a barrel on the New York Mercantile Exchange.
For comments and feedback: contact firstname.lastname@example.org