Australian shares bounced back on Tuesday in a broad-based rally, as a recovery in underlying prices helped boost commodity stocks after losses last week, while investors awaited a key U.S. inflation report.
The S&P/ASX 200 index gained 0.6% to 8,035.7, as of 0032 GMT. The benchmark closed 0.3% lower on Monday.
A U.S. inflation print, due on Wednesday, is expected to offer final hints of the size of the Federal Reserve’s interest rate cuts, ahead of the central bank’s policy meeting next week.
Back in Sydney, financials led gains on the benchmark, jumping 0.9%, with the “Big Four” banks all rising between 0.5% and 0.9%.
Related Post
Miners climbed 0.8%, after iron ore prices posted their first day of gains in seven on stimulus hopes from top consumer China. The mining sub-index lost 6.5% last week.
Mining giants BHP and Rio Tinto were up 0.9% and 0.8%, respectively.
Energy stocks climbed 0.3% while gold miners gained 0.9%, on the back of a rebound in their respective underlying prices.
Australia shares end higher
Brent crude futures rose 0.1% to $71.91 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.06% to $68.75 per barrel.
Healthcare companies were up 0.7%, while information technology firms jumped 0.2%, following an overnight relief in their Wall Street peers.
Overnight, the U.S. Dow Jones Industrial Average rose 484.18 points, or 1.20%, at 40,829.59 points on Monday. The S&P 500 gained 62.63 points, or 1.16% while Nasdaq gained 193.77 points, or 1.16%.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index firmed 0.1% to 12,637.46.
Source: Brecorder
