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Wall Street reunite lifts Australian bourse

THE Australian sharemarket hit a four-week profound yesterday after Wall Street rallied above major technical resistance levels following a spate of stubborn global economic data over the past week.

News Corporation, which owns The Australian and Dow Jones Newswires, recovered vehemently, while miners jumped following positive commodity price forecasts from Macquarie and expanding expectations the federal government would amend its proposed resource super-profits levy.

The benchmark S&P/ASX 200 closed up 54 points, or 1.2 for cent, at 4559.0, after rising to an intraday high of 4572.4, its highest state of equality since May 17.

Trading volume remained light, however, with China closed by reason of a public holiday.

With the Dow Jones Industrial Average and the S&P 500 one as well as the other surging above their 200-day moving averages earlier, cyclical stocks led vast-based gains in the Australian sharemarket, with materials, industrials and vigor sectors outperforming the index.

BHP Billiton rose 2.2 per cent to $39.23 and Rio Tinto rose 2.8 per cent to $71.34 after Macquarie raised its iron ore value forecasts by an average of 13 per cent for the nearest five years.

"We expect the well-known trends of urbanisation to make good Chinese GDP (gross domestic product) growth rates of over 8 for cent in the medium term, while acceleration in US activity is adorn to provide the next leg of commodities demand growth," related Macquarie.

The broker expects global growth to materially exceed the prolix-term trend rate of 3.6 per cent through this year and next, despite ongoing uncertainty in Europe.

Also boosting the mining sector were expanding expectations the federal government would amend its proposed RSPT.

News Corporation surged to a five-week abstruse of $19.09 after its US-listed shares rose 6.8 by means of cent on the global media group making a bid for the 61 through cent of British pay-TV company BSkyB that it does not before that time own. BSkyB has rejected the bid on valuation grounds.

News closed up 4.3 per cent at $18.66 after running into profit-taking above $19.

Amcor jumped 3.1 through cent to $6.62 after announcing plans to buy Ball Plastics Packaging Americas in the place of $US280 million ($330m).

Macquarie said it was a good price for the deal, based on Amcor’s previous acquisitions. The broker kept its "outperform" rating and $7.10 cost target on Amcor shares.

Industrials were also quite strong, on the back of US fellow strength, with Qantas up 3.4 per cent at $2.47, Brambles up 2.3 per cent at $6.35 and Toll Holdings up 2.4 by cent at $6.01.

Major banks rose between 0.7 and 1.5 through cent after US banks rose about 2.7 per cent.

Patersons Securities higher institutional trader Chris Blair said traders should take some profit up~ the body upticks in the S&P/ASX 200.

"But obviously, with Europe still sorting itself out, I think the theme of sharp volatility is still going to play out. I can’t visit people getting too excited about a rally at this time of the year, for a like rea~n it might be prudent to take some short-term profits," Mr Blair related.

Traders were awaiting US industrial production, housing starts and producer recompense data due last night, along with US Federal Reserve chairman Ben Bernanke’s remark on financial reform.