Glimmer of hope as Australian share market bounces back

THE market remained cautious at open today, after Wall Street finished slightly higher overnight despite further disappointing data.

THE Australian share market remained cautious at open today, after Wall Street finished slightly higher in overnight trade despite further disappointing data.

At 10.32am (AEST) today, the benchmark S&P/ASX200 index was down 12.3 points, or 0.28 per cent, at 4320.5 while the broader All Ordinaries index was down 11.5 points, or 0.26 per cent, at 4396.8.

On the ASX 24, the September share price index futures contract was four points lower at 4,282 points, with 19,420 contracts traded.

By 10.45am, however, the key indices had entered positive territory, with the S&P/ASX200 and the All Ordinaries both by then up 0.2 per cent, and the Futures index trading almost half a per cent higher.

US stocks closed flat to higher in overnight trade, as the Dow Jones Industrial Average ended an eight-day losing streak. The Dow average of 30 blue-chip stocks rose 29.82 points (0.25 per cent) to settle at 11,896.44.

The broader S&P 500 climbed 6.29 points (0.5 per cent) to 1260.34, while the tech-heavy Nasdaq Composite rallied 23.83 points (0.89 per cent) to 2693.07.

Burrell Stockbroking adviser Jamie Elgar said traders were being cautious on continued fears about global growth.

Overnight, a pair of reports suggested that the US economy was faltering. Payrolls firm ADP reported that a net 114,000 jobs were created by private, non-farm businesses in the United States in July, fewer than in June but better than analysts had expected.

As well, the Institute for Supply Management said its index of non-manufacturing activity fell to 52.7 last month, indicating that the US service sector hardly grew in July.

"The last few days have been pretty dire, to say the least, and most people have been looking overseas for the cue," Mr Elgar said.

"It is positive that Wall Street snapped that eight day losing streak... It was almost going back to GFC territory."

In local trade, resources stocks were mixed, with BHP Billiton up 12 cents at $40.27 shortly after market open, while Rio Tinto was down two cents at $77.58.

Banks and financials opened lower. ANZ fell furthest, down 21 cents, or 1.03 per cent, at $20.08, National Australia Bank fell six cents to $23.14, Westpac was down 11 cents at $19.99, while Commonwealth lost 12 cents to $48.43.
Telstra was up 1.5 cents at $2.995.

At 10.15am, the price of gold in Sydney was $US1661.50 per fine ounce, down $7.93 from $1669.43 at close on Wednesday.

Gold miner Newcrest was up five cents at $40.80.

At 10.30am, Aquarius Platinum was the best performer in the top 100, up 11 cents, or 2.77 per cent, at $4.08.

National turnover at 10.53am was 689.53 million shares, worth $1.18 billion, with 383 shares trading higher, 309
lower, and 314 were steady.