The Australian share market has opened stronger on the back of a positive lead from US markets and a jump in the price of oil.
CMC Markets chief market analyst Ric Spooner said the energy sector had jumped two per cent in early trading.
“A significant factor (in the market’s rise) this morning is the response to the jump in oil prices last night,” Spooner said.
“There’s also a possibility we might see quite a substantial cut in US oil production unfold over the next few months.”
Spooner said the local market’s performance on Thursday would also depend on unemployment figures, due out later in the morning.
“That has the capacity to either drive this rally or turn it on its head to some extent.”
In the resources sector at 1021 AEST, global miner BHP Billiton had added 64 cents to $30.15, and Rio Tinto had gained 32 cents at $56.15.
Fortescue Metals firmed 12.5 cents to $1.98. The miner has reduced its quarterly cash costs by nine per cent to $US25.90 a tonne while lifting production one per cent to 37 million tonnes.
Iluka Resources fell 37.5 cents to $7.985 as it blamed a drop in sales revenue in the March quarter on falling demand for its mineral sands products.
Stay informed, daily
In the energy sector, Woodside Petroleum rose 36 cents to $35.77, and Santos lifted 28 cents to $8.00.
Among the major banks, ANZ picked up 26 cents at $36.20, Commonwealth Bank advanced 91 cents at $93.35, National Australia Bank put on 27 cents at $39.30, and Westpac was up 30 cents at $39.22.
Nine Entertainment rose 15 cents to $2.30 as it said it is selling its Nine Live business to Affinity Equity Partners for $640 million, with shareholders set to share in the spoils.
On Wall Street in the US on Wednesday, a rally in petroleum-linked equities helped lift the market following mixed earnings and economic data.
The Dow Jones Industrial Average added 75.91 points, or 0.42 per cent, to 18,112.61 points.
