Aust stocks rally at close

Local market gains momentum after lacklustre start as investors react well to early earnings reports.

The Australian stock market rallied in late trade after a lacklustre start as investors took well to the first week of local corporate earnings season. 

At 1615 AEST official market close, the benchmark S&P/ASX200 index added 0.96% to 5,157.7 points, while the broader All Ordinaries index increased 0.93% to 5,141.6 points.

CMC Markets senior trader Tim Waterer said buying levels today indicated that investors were not anticipating any negative news from the big names due to report for the remainder of the week.

"It seems traders are quite content with how the earnings season has progressed so far," he said. 

IG market analyst Chris Weston said all eyes would be on Commonwealth Bank's full year report tomorrow. 

"The stock makes up nearly 10% of the market, although if you put the other three banks into the mix you effectively have 30 per cent of the whole market in play tomorrow, depending on any one thematic that could be re-iterated in the other three banks’ price action from CBA’s result," Mr Weston said. 

Mr Waterer said traders had one eye on US data due out this week that could have a bearing on the tapering of stimulus.  

"While the mood across Asian markets today was generally supportive of risk assets, traders are still mindful that some upcoming events in the US may shape expectations for potential QE tapering," he said.  

"With US retails sales data due, as well as scheduled comments from Federal Reserve officials on the radar over coming days, there is potential for adverse market reaction if tapering appears to be closer to fruition."

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