Solid market open with more evidence of retail strength
What promised to be a quiet post-Thanksgiving Friday for the Australian market is off to a solid start. The two big engines of the Australia 200 index are firing simultaneously this morning with both mining stocks and banks attracting support.
Mining stocks have rallied following a strong bounce for copper and other base metals in London. BHP has managed to recover in early trade this morning despite concerns about remediation liabilities for the Samarco mine in Brazil. Support for BHP is a sign that investors have been caught off guard by last night’s support for metals.
Oroton Group’s announcement that positive like for like sales growth has continued in recent weeks follows solid sales results from David Jones and Myer. There is growing evidence that the consumer discretionary retail sector is outperforming market expectations.