MARKET TALK: S&P/ASX 200 Flat; Recources Fall

S&P/ASX 200 flat at 6304.7, hits 3-day low of 6285.2 as resources fall in line with overnight reaction to LME fall. But senior institutional trader tips positive close for index, noting market-friendly budget. No significant budget impact so far, though consumer staples showing some strength, with Woolworths (WOW.AU) up 1.5% A$28.00 after finding chart support near 4-week low of A$27.53. David Jones (DJS.AU) up 0.7% on 8.4% rise in 3Q sales. Alumina (AWC.AU) up 1.2% on broker upgrades. Resources recovering from early weakness, with BHP (BHP.AU) down 1.0% at A$30.86 vs A$30.73 ADR close and Rio (RIO.AU) down 1.4% at A$88.47 vs A$87.84 low. Resources factored in much of the LME fall locally yesterday and M&A speculation has scope to boost both stocks.