Shares up on good local, US data

THE share market was up 1.3 per cent by noon after better than expected jobs and productivity data in the US and as the Reserve Bank of Australia raised its forecast for economic growth. All sectors of the market gained, despite falls in metals and oil prices overnight.

At 1200 AEDT, the benchmark S&P/ASX200 index was up 59.4 points, or 1.32 per cent, at 4567.4, while the broader All Ordinaries had gained 60.3 points, or 1.33 per cent, to 4579.5, after closing at an almost two-month low yesterday.

"The US was exceptionally strong last night on the good employment figures and productivity data," said Colonial First State head of investment markets research, Stephen Halmarick.

"The RBA made pretty substantial upward revisions to growth forecasts, as well.

"Every sector is up at the moment."

BHP Billiton was up 55 cents, or 1.5 per cent, at $36.99 and Rio Tinto gained 94 cents to $63.53.

Fortescue Metals added eight cents to $3.76 while Oz Minerals rose two cents to $1.18.

Banks were higher too, with National Australia Bank up 35 cents at $28.52, Westpac adding 61 cents, or 2.4 per cent, to $26.50, Commonwealth Bank rising 83 cents to $52.68, and ANZ increasing 11 cents o $22.18.

In the US, the number of newly laid-off workers seeking unemployment benefits fell to their lowest level since January, and fewer than economists had forecast.

Productivity figures also had their biggest rise in six years.

The Dow Jones Industrial Average gained 2.08 per cent, the tech-heavy Nasdaq rose 2.42 per cent and the broad-market Standard & Poor's 500 index increased 1.92 per cent.

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