MARKET COMMENT: S&P/ASX 200 May Rise Before RBA Decision

2356 GMT [Dow Jones] Australia's S&P/ASX 200 may rise before the RBA's interest-rate decision at 0430 GMT, with short-covering in high-yield stocks likely amid some speculation of a surprise cut. Upgrades should also help the market recover from Monday's close at a 2-month low. Bell Potter has upgraded NAB (NAB.AU) and ANZ (ANZ.AU). JPM, GS, CS and Bell Potter have upgraded Cochlear (COH.AU), while JPM has upgraded Transpacific (TPI.AU). Resources should find some relief from a bounce in commodity prices. Gold, oil, iron ore and copper rose 0.4%-1.8% as the WSJ U.S. dollar index fell 0.9% after the U.S. ISM manufacturing index declined to its lowest level since 2007, reducing fears of lesser Federal Reserve monetary stimulus. BHP (BHP.AU) ADRs closed at A$34.19, up 0.3% on its local equivalent price. On the charts, the S&P/ASX 200 is very close to key support from the April 5 low at 4883.7. Index last 4888.3. ([e-mail])

 
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