SYDNEY (AFX) - Share prices are expected to retreat from record levels reached on Monday as investors await the outcome of the US Federal Reserve Board's policy meeting which will influence markets around the world, dealers said.
They said the Federal Open Market Committee's assessment of the US economy will be a key factor influencing markets in coming days rather than the expected 25 points hike in the Fed funds target rate to 4.75 pct.
Meanwhile, dealers said although investors will mark time ahead of FOMC statement, solid commodity prices and corporate activity will limit falls on the local market.
They said uranium stocks are likely to be favor following news that China will be free to invest in uranium mining and exploration in Australia after the visit of Premier Wen Jiabao to Australia which begins on Saturday.
Yesterday, share prices closed at fresh record highs, fuelled by a burst of takeover activity and strong commodity prices.
The S&P/ASX 200 jumped 48.0 points or 0.95 pct to close at an all-time high of 5,088.1, also its high for the day and surpassing Friday's record close of 5,040.1.
The key indicator closed above the previous intra-day all-time peak of 5,051.9 points reached on Friday.
The All Ordinaries Index added 43.5 points to a new all-time closing peak of 5,045.1.
In New York, share prices closed mixed Monday, after a wary session ahead of a Federal Reserve decision on interest rates. The Dow Jones Industrial Average ended down 28.01 points at 11,251.96.
News Corp ended up 0.74 pct while National Australia Bank ADRs rose 0.15 pct.
In London, shares closed weaker on Monday, near session lows, with the FTSE 100 index dropping back below the 6,000 level, ending down 64.1 points at 5,972.2.
BHP Billiton eased 0.69 pct after reaching a record high in Australian trading on Monday while Rio Tinto pulled back 0.88 pct.
Crude oil prices were little changed on Monday. The May Nymex contract fell 0.10 usd to 64.16 usd a barrel.
Base metal prices rose again on Monday, supported by threats to supply. A strike is underway at Grupo Mexico's 300,000 metric tons per year La Caridad copper mine. Meanwhile, production problems have disrupted two mines in Indonesia.
Copper and zinc prices rose to fresh record highs.
Precious metal prices also rose on Monday, supported by fund manager buying, with silver lifting to fresh 22-year highs.
The Comex April gold quote rose 6.90 usd to 567.40 usd.
Ahead in Australia, the Reserve Bank releases its half year financial stability review.
(1 usd = 1.42 aud)
bruce.hextall@xfn.com
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