The Australian market moved higher in early trades on Friday with the overnight buoyant close on Wall Street and data showing an expansion in Australian manufacturing activity aiding sentiment to a notable extent. However, with investors turning cautious at higher levels and choosing to take profits after recent strong gains, the market has given up most of its gains and is currently down in negative territory.
The S&P/ASX 200 index, which rose to around 4,620 in early trades, is now down 7.6 points at 4,600.4. The broader All Ordinaries index, is trading at 4,655.8, down 4 points from its previous close.
On Thursday, the S&P/ASX 200 index added 78.5 points or 1.7 percent to close at 4,608, while the All Ordinaries index closed up 80 points or 1.7 percent at 4,659.8.
Among bank stocks, Westpac, National Australia Bank and Commonwealth Bank of Australia are trading modestly lower, while ANZ Bank is up marginally.
Among top miners, BHP Billiton is up marginally, Fortescue Metals and Newcrest Mining are trading modestly higher, while Rio Tinto is down with a marginal loss.
In the energy space, Oil Search, Origin Energy and Santos are trading slightly down, while Woodside Petroleum is trading modestly higher.
On the economic front, manufacturing activity in Australia increased in June, according to survey results released Friday by the Australia Industry Group and pricewaterhouse Coopers. The group's Performance of Manufacturing index rose 5.2 points to 52.9, the first expansion since February. AIG said new orders and production increased, partially offset by continued contraction in manufactured exports and manufacturing employment.
In the currency market, the Australian dollar opened marginally lower. In early trades, the Aussie was quoting at US$1.0723, down slightly from Thursday's close of US$1.0740.
Among other markets in the Asia-Pacific region, Japan, New Zealand and South Korea are trading notably higher, while Malaysia is up marginally. Markets across the region ended higher on Thursday.
On Wall Street, stocks moved higher on Thursday following the Greek parliament voting for rapid implementation of the austerity plan that includes billions of euros in spending cuts and tax increases. Data revealing an unexpected expansion in Chicago-area manufacturing activity in June also contributed to the surge.
The major averages rose to their best closing levels in a month. The Dow jumped 152.9 points or 1.3 percent to 12,414.3, the Nasdaq moved up 33 points or 1.2 percent to 2,773.5 and the S&P 500 ended up 13.2 points or 1 percent at 1,320.6.
Major European markets too ended notably higher on Thursday. The German DAX index advanced by 1.1 percent, while the U.K.'s FTSE 100 index and the French CAC 40 index both gained 1.5 percent.
Crude oil prices edged higher on Thursday on the back of an encouraging report on manufacturing activity in June. Light, sweet crude for August delivery ended up 65 cents at US$95.42 a barrel on the New York Mercantile Exchange.
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