US sets trend, rates lurk in background

The sharemarket closed higher as investors latched on to a positive US lead and shrugged off interest rate concerns.
The market was broadly higher, with the big banks and resources stocks leading the way.
The ASX 200 index rose 66 points to 4997.5, while the All Ordinaries gained 59.6 to 4966.2.
ABN Amro Morgans private client adviser Bill Bishop said the market had taken its lead from stronger US markets.
"The local market has followed Wall Street's encouraging lead which was fuelled by some positive company results," he said.
"For now at least the market is living with the spectre of interest rate unknowns and the Middle East dramas."
Overnight, the Dow Jones index rose 74.2 points to 11,199.93.
Global miner Rio Tinto soared $1.49 to $76.15. Shortly before the close of trading, Rio Tinto reported a 75 per cent jump in first-half net profit to a better-than-expected, record $US3.796 billion ($4.98 billion), comfortably beating market forecasts of $US3.5 billion.
BHP Billiton, which has launched a new global technology centre in Perth, rose 81c to $27.96.
Alumina jumped 4 per cent or 24c to $6.40 after forecasting continued strong aluminium demand and delivering a record first-half result.
Energy stocks were broadly higher as the oil price drifted upwards. Woodside put on 33c to $42.05 and Santos rose 17c to $11.57 but Oil Search fell 5c to $3.98. Beach was up 3.5c at $1.695 and Hardman stopped falling, closing up 2.5c at $1.485.
Shares in explorer Redstone Resources listed on the market at 30c each, well above its 25c issue price. Redstone closed its first day's trade at 39c.
However, Brisbane toll road company RiverCity Motorway Group listed at 46.5c, below the 50c partly paid issue price, before closing at 46c, off 8 per cent.
The big banks were higher across the board. The Commonwealth jumped 77c to $45.90. Westpac rose 29c to $22.30, NAB added 39c to $36.05 and ANZ firmed 19c to $25.74.
Elsewhere in the financial services sector, Axa was steady at $6.40 despite reporting a 20 per cent lift in first-half operating earnings to $223 million and forecasting continued growth.
West Australian Newspapers rose nearly 4 per cent or 33c to $8.73 after posting a 28 per cent decline in annual earnings and flagging a rise in advertising revenue in the first month of its 2006-07 financial year.
The retailers rallied. Woolworths improved 25c to $19.10, Coles Myer found 6c to $10.66 and David Jones also added 6c to $3.10.
Telstra jumped 7c to $3.94 and was the top traded stock with 39.30 million shares valued at $153.62 million changing hands.
The spot price of gold was $US649, down US25c, but the goldminers were higher, with Newcrest putting on 12c to $19.42 and Newmont rising 10c to $6.82.
And Djerriwarrh Investments, down 4c to $4.49, plans to raise $140 million through a 1-for-5 rights issue at $4 a share.