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The share market has hit a fresh decade high thanks to strong commodity prices and positive leads from overseas markets.

The benchmark S&P/ASX200 stock index rose 0.5 per cent to 6,071.8 points, as all sectors gained ground, with the exception of industrials.

The index is at its highest level since January 2008.

Charles Schwab market analyst Ben Le Brun said the market took positive cues from Wall Street, as expectations of US tax reform measures being passed by Congress drove the key market indices to record levels.

The local market has also been boosted by strength in commodity prices, including a 5.2 per cent rise in iron ore to $US74.40 a tonne.

“We have rallied up to a decade high right when the seasonal factors act as a tailwind,” Mr Le Brun said.

“There’s a lot of excitement about the US tax plan which the market will continue to watch.”

Rio Tinto gained 1.3 per cent to $72.33, BHP Billiton rose 0.8 per cent to $28.47 and South32 climbed three per cent to $3.37.

Energy giants Woodside Petroleum, Origin Energy and Oil Search all rose by more than one per cent.

The financial sector was also stronger, with ANZ leading the big four banks with a gain of 0.7 per cent to $29.02, while Macquarie Group added 0.9 per cent to $99.62.

Healthcare stocks with US exposure were also stronger, with CSL up 0.8 per cent at $142.47 and Cochlear 0.3 per cent higher at $176.37.

Telstra gained 0.5 per cent to $3.70.

Retail Food Group was one of the market’s worst performers, plunging by 67 cents, or 25 per cent, to $1.98, its lowest level since 2009.

The Gloria Jean’s and Donut King owner warned its Australian franchise revenue had declined and would likely lead to a 34 per cent fall in its half year profit.

The Australian dollar is slightly higher, with little reaction to the release of minutes from the Reserve Bank board’s December meeting, which carried a positive tone.

ON THE ASX:

* The benchmark S&P/ASX200 was up 32.9 points, or 0.54 per cent, at 6,071.8 points.

* The broader All Ordinaries index was up 33.2 points, or 0.54 per cent, at 6,163.2 points.

* The SPI200 futures contract was up 37 points, or 0.61 per cent, at 6,078 points.

* National turnover was 3.9 billion securities traded worth $6.6 billion.

CURRENCY SNAPSHOT AT 1700 AEDT:

One Australian dollar buys:

* 76.67 US cents, from 76.61 US cents on Monday

* 86.33 Japanese yen, from 86.31 yen

* 65.02 euro cents, from 65.14 euro cents

* 57.30 British pence, from 57.08 pence

* 109.52 NZ cents, from 109.28 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEDT was $US1,263.51 per fine ounce, from $US1,256.01 per fine ounce on Monday.

BOND SNAPSHOT AT 1630 AEDT:

* CGS 4.50 per cent April 2020, 2.0075pct, from 1.9538pct on Monday

* CGS 4.75pct April 2027, 2.5541pct, from 2.4981pct

Sydney Futures Exchange prices:

* March 2018 10-year bond futures contract at 97.395 (implying a yield of 2.605pct), from 97.44 (2.56pct) on Monday.

* March 2018 3-year bond futures contract at 97.875 (2.125pct), from 97.905 (2.095pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)