NAB National Australia Bank Limited

2258 GMT [Dow Jones] Australia's S&P/ASX 200 may rise early Thursday after stronger-than-expected U.S. retail sales data added to signs the world's biggest economy is recovering. U.S. February retail sales rose 1.1% vs 0.6% expected, helping the S&P 500 close up 0.1% after an early fall. While the DJIA Transports index lost ground, the DJIA and Nasdaq rose, and the CBOE VIX volatility index fell 3.6%. Further bolstering U.S. market sentiment, JPMorgan upgraded its 1Q U.S. GDP forecast to 2.3% from 1.5%, and Deutsche Bank raised its to 3% from 1.5%, while also lifting its 2013 estimate to 2.3% from 2.0%. Banks may lead an early rise after the S&P 500 Financials sector rose 0.4%, although Citi has cut NAB (NAB.AU) to Neutral from Buy, following its strategy update. Resources may lag after LME copper fell 0.6% and spot iron ore lost 3.1%. London-listed BHP (BHP.AU) fell 1.3%, Rio Tinto (RIO.AU) dropped 2% and Cliffs Natural Resources dived 4.7% in the U.S. ADRs suggest BHP should open down about 1%. Domestic jobs data are due at 0030 GMT, with the market expecting a 10,000 rise in the number of people employed and a 5.5% jobless rate. Index last closed at 5092.4. (david.rogers1@wsj.com)

 
Write to Shani Raja at shani.raja@wsj.com 
 
 

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