Australian shares gained on Thursday in tandem with Wall Street, after in-line U.S. inflation data fuelled hopes of an impending Federal Reserve rate cut, while investors awaited local jobs data due later in the day.
The S&P/ASX 200 index rose 0.3% to 8,378.9 points by 1134 GMT. The benchmark fell 0.5% on Wednesday.
A Labor Department report on Wednesday showed U.S. consumer prices in November increased by the most in seven months, though broadly in line with market expectations, boosting expectations of a Fed rate cut.
Markets are now pricing in a more than 96% chance the Fed will cut rates by 25 basis points next week, according to CME’s FedWatch Tool.
Locally, investors sat tight ahead of Australia’s November employment data, a key metric that will provide greater clarity on the Reserve Bank of Australia’s (RBA) rate cut stance. The RBA is slated to meet next in February.
Australian shares follow Wall Street lower ahead of US inflation data
On the Sydney bourse, rate-sensitive financials rose 0.4%, with one of the country’s top lenders Westpac Banking Corp adding 0.4%.
Heavyweight miners added 0.3%, tracking the broader benchmark, led by Fortescue’s 0.5% rise.
Technology stocks advanced around 0.6%, following its Wall Street peers, as a rally in tech stocks lifted the Nasdaq above the 20,000-point milestone for the first time.
Software developer Xero jumped 0.5%.
Gold stocks followed the broader trend to gain 1.3% as bullion prices advanced.
Energy stocks ascended as well, adding 0.4% on rising oil prices.
Sector majors Woodside Energy and Santos climbed 0.2% and 0.3%, respectively.
Among individual stocks, graphite miner Syrah Resources plunged as much as 32.1% to its lowest since March 2020 after its unit declared a force majeure event at its Balama Graphite Operation in Mozambique amid post-election civil unrest.
New Zealand’s benchmark S&P/NZX 50 index traded flat at 12,763.07 points.
Source: Brecorder
