Australian shares ride Wall Street’s coat-tails higher
Adrian Black |
Australia’s share market is edging towards a fourth session of gains, tracking with a Wall Street reinvigorated by an improved US interest rate outlook.
The S&P/ASX200 rose 38.2 points by midday, up 0.44 per cent, to 8,644.7, as the broader All Ordinaries gained 37.2 points, or 0.43 per cent, to 8,937.5.
While global equities rallied overnight as bets narrow on a Federal Reserve interest rate cut in December, local inflation and employment numbers point towards tighter borrowing costs in Australia as early as 2026’s first half.
“With growing evidence that the economy is close to bumping up against capacity constraints, we are confident in calling the RBA easing cycle as over,” NAB chief economist Sally Auld said.
“While historically quite rare, soft landings bring a distinct set of challenges.”
Nine of 11 local sectors were higher by midday, while energy stocks fell 1.3 per cent, tracking with losses in oil, gas, coal and uranium stocks.
Technology stocks led the push higher, soaring 2.9 per cent in a broad-based rally led by sector giant WiseTech Global, which surged more than six per cent after appointing Raelene Murphy to its board.
Health care stocks also continued to rebound from recent weakness, up 1.2 per cent, tracking with two per cent lifts in CSL and Pro Medicus.
Christchurch-based retirement home operator Ryman Healthcare jumped 2.8 per cent after delivering its first free cash-flow positive half in a decade, while still trading at a net loss.
Financial stocks are on track for their first consecutive session of gains since October, as Commonwealth Bank led its three big rivals forward to break a recent trend of sell-offs.
Commonwealth Bank shares were up 1.2 per cent to $155.30, while ANZ trailed its three main competitors with a 0.4 per cent boost to $35.25.
Big insurers were broadly lower, with QBE tumbling 3.7 per cent despite an on-track third quarter report, while recent thunderstorms in southern Queensland weighed on Suncorp (-1.7 per cent), which flagged 10,000 fresh claims.
The materials sector defied a rally in gold stocks to slip into the red by midday, with major miners Fortescue, Rio Tinto and BHP under pressure as iron ore futures ran into resistance at $US105 a tonne.
ASX-listed gold miners were broadly higher, with Northern Star, Evolution and Newmont all lifting more than two per cent, as the spot price hovered just below November highs to trade at $US4,165 ($A6,384) an ounce.
Mixed miners, rare earths producers and lithium plays were broadly lower, as Liontown (-4.2 per cent), Lynas (-3.1 per cent) and Iluka (-2.3 per cent) sold off.
Goodman Group helped ballast a mixed session for real estate stocks, lifting 2.5 per cent to $30.13 as the broader sector grinded 0.8 per cent higher.
Industrials edged upward by 0.3 per cent, with plumbing goods supplier Reece unplugging a 4.5 per cent improvement after announcing an on-market buyback.
The Australian dollar is buying 65.26 US cents, up from 65.06 US cents, as the interest rate outlooks for Australia and the United States continue to diverge.
AAP
