SYDNEY: The Australian sharemarket jumped higher in early trade after overseas markets were buoyant despite continued concerns that Greek debt talks may fail to reach any conclusion this week.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index was up 40 points, or 0.72 per cent, at 5,575.8, while the broader All Ordinaries index rose 37.1 points, or 0.67 per cent, to 5,572.3.
US stocks set a positive tone for the local market, rebounding from two days of losses, as investors awaited news on the Greece bailout talks and the outcome of the Federal Reserve’s policy meeting this week. The Dow Jones Industrial Average was up 0.6 per cent at the closing bell.
“There is upside potential for stock markets if the Fed is able to focus attention on what happens after the first rate hike with assurances that it will remain very cautious about the pace of monetary tightening once it gets underway,” CMC Markets chief market analyst Ric Spooner said.
Woolworths shares rose 0.56 per cent to $26.99 at the opening, after the retailer said chief executive Grant O’Brien was leaving. The company also downgraded its full-year earnings guidance.
Elsewhere on Wednesday, Westpac-Melbourne Institute releases its leading indexes of economic activity report, while in other equities news furniture retailer Adairs will debut on the Australian Securities Exchange.
At the opening, financials were up 1.39 per cent overall.
ANZ rose 2.02 per cent to $32.82, while Commonwealth Bank advanced 1.66 per cent to $83.75.
National Australia Bank rallied 1.71 per cent to $33.35 while Westpac increased 1.11 per cent to $32.66.
Materials edged 0.05 per cent higher amid weakness in the iron ore price.
Rio Tinto rose 0.41 per cent to $56.14 while BHP Billiton was flat at $27.75.
The energy sector fell 0.49 per cent and utilities were down 0.16 per cent.
