ASX Rebounds from $63B Wipeout
The Australian sharemarket rebounded from a $63 billion wipeout at the open on Thursday, tracking gains on Wall Street following data pointed to a strong US economy, keeping rate cuts on the cards.
The S&P/ASX 200 Index was up by 0.7%, or 62 points to 8963.20 at 10.10am AEDT, with nine of the 11 sectors strong. It follows a 1.9% plunge on Wednesday – the second-biggest fall in a year.
Interest rate sensitive tech stocks were the biggest risers, buoyed by strong overnight gains on the Nasdaq as robust economic data bolstered hopes for more US rate cuts. WiseTech Global rose 4.2% and Xero 5.3%.
Investors also returned to the major banks with ANZ up 1.1%, Commonwealth Bank 1.3%, Westpac by 1.4% and National Australia Bank 2.2%.
Energy was the weakest sector as oil prices remained relatively stable at around $US81.40 an ounce. Capital.com senior market analyst Kyle Rodda said markets were still hopefully of an off-ramp in the Middle East
“Reports that Iran had reached out via back channels to discuss a detente helped sentiment, although it was later quashed by the Iranians,” he said.
“It’s likely that this is still a market exposed to the kind of two-way volatility that tends to persist in environments of high uncertainty.
Woodside dived 3.2%, while Santos edged up 0.1% and coal miner Whitehaven Coal added 1.7% following another uplift in coal prices.
Miners were also down as BHP retreated 1.6% in the pivot away from resources. Gold remained around $US5150 an ounce, which weighed on miners following strong gains at the start of the week. Newmont fell 1.7%, Northern Star 2.7% and Evoultion Mining 1.8%.
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