Positive start for Australian shares

The Australian sharemarket has opened higher after US and European markets posted gains on positive US housing data and the impact of a weaker US dollar on commodities.

In early trade, the benchmark S&P/ASX200 index rose 18.3 points, or 0.4 per cent, to 4735.3 and the All Ordinaries gained 18.1 points, or 0.4 per cent, to 4757.3.

Materials stocks rose 0.8 per cent while industrial and financial stocks gained 0.5 per cent.

Joseph Palmer & Sons adviser Alex Moffatt said the market would get a boost after gains on Wall St and higher base medal prices.

He said retailers were also in for a good day after Harvey Norman's chief Gerry Harvey yesterday predicted a strong Christmas season.

Mr Moffatt said he expected a 40-60 point rise today.

"And I'm still confident we might get within a hair's breath of 4900 by the end of the year...with upside potential."

"I think buying on marked dips is good value," he said, with Joseph Palmer & Sons buying shares in Westpac and Woolworths recently.

Mr Moffatt said stocks had staged a recovery rally since March, bringing share values back to more normal levels after the financial panic of last year.

"People can only put up for so long with cash sitting in bank accounts at 1 or 2 per cent," he said.

- AAP