Article: Australian Market Report of August 5: Correction Time Ahead

US stocks traded slightly higher overnight with more buying in financials. Analysts expect there would be a short-term correction after the rally as investors lock in gains from a strong three-week rally.

The Australian shares yesterday rose on the positive lead in Wall Street and higher commodities prices. The recent strong market performance has increased investors' appetite for risk. At the close, the S&P/ASX 200 added 45.9 points, or 1.1 per cent, at 4309.3, while the broader All Ordinaries was up 43.4 points, or 1 per cent, to 4313.9.

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The Reserve Bank kept the official interest rate on hold for the fifth month at 3 per cent, in line with market ...

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