ASX up ahead of Christmas

The Australian share market opened stronger on Christmas Eve, with the resources sector benefiting from higher commodity prices.

At 1015 AEDT, the benchmark S&P/ASX200 index was up 21.5 points, or 0.45 per cent at 4,760.8 points, while the broader All Ordinaries index had gained 19.8 points, or 0.42 per cent, to 4,775.9.

On the Sydney Futures Exchange the March share price index contract was 16 points higher at 4,756, on a volume of 3,629 contracts.

Metal and oil prices rose overnight as the US dollar weakened for the first time this week, while crude oil inventories in the US fell.

That pushed the local resources sector higher.

BHP Billiton added 67 cents, or 1.6 per cent, to $42.59, while rival Rio Tinto was up 44 cents, or 0.6 per cent, to $73.72.

In the energy sector, Woodside added 26 cents to $47.62, Oil Search was steady at $5.88 and Santos was down three cents at $14.00.

In the gold sector, Newmont Mining lifted 19 cents, or 3.58 per cent, to $5.50, Lihir Gold added four cents to $3.21, but Newcrest Mining dropped nine cents to $34.87.

The spot price of gold in Sydney was $US1,089.70 per fine ounce at 1034 AEDT, up $US4.50 on Wednesday's closing price of $US1,085.20.

On Wall Street, an unexpected drop in sales of new homes last month cast doubt on the state of an economic recovery.

Economists had forecast an increase in sales of new homes but instead they plunged 11.3 per cent in November to their lowest level since March.

However personal spending and income both rose in November.

The Dow Jones industrial average edged up 1.51 points, or 0.01 per cent, to settle at 10,466.44.

The Standard & Poor's 500 index gained 2.57 points, or 0.23 per cent, to 1,120.59, while the Nasdaq composite index rose 16.97, or 0.75 per cent, to settle at 2,269.64.

- AAP