MARKET COMMENT: S&P/ASX 200 May Rise After BHP Output Report

2357 GMT [Dow Jones] Australia's S&P/ASX 200 may rise Wednesday, after BHP (BHP.AU) delivered a strong 4Q production report featuring record iron-ore production that beat market expectations. BHP's ADRs rose to A$33.87 vs Tuesday's local close at A$33.43. Rio Tinto (RIO.AU) may also outperform after its London-listed shares rose 2.7% following the 2Q production report released yesterday. Higher commodity prices should also help the miners, with spot iron ore up 1.7% and LME copper up 1.2% as the U.S. dollar declined before Fed Chairman Ben Bernanke's Congressional testimony later Wednesday. U.S. CPI, industrial production and housing market data exceeded expectations, as did results from Goldman Sachs. But the S&P 500 slipped 0.4%, breaking an 8-day winning streak. Goldman Sachs' result could rub off on Macquarie Group shares today. Insurance Australia (IAG.AU) will also be in focus after raising its insurance margin guidance. The S&P/ASX 200 still faces strong technical resistance at 5014.0, although tentative support has emerged near 4960. Index last 4986.0. ([e-mail])

 
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