Australia’s share market has risen more than 1.5 per cent from a near eight-year low but consumer confidence has sagged as a flood of profit warnings pour in and the coronavirus spreads.
The benchmark S&P/ASX200 was up 55.6 points, or 1.22 per cent, to 4,661.6 at 1030 AEDT on Tuesday on a surge of buying.
The All Ordinaries index climbed 54.9 points, or 1.2 per cent, to 4619 with all sectors in the green except consumer discretionary, industrials and utilities stocks.
The market rebound comes despite consumer confidence drooping to its lowest level since the early 1990s recession.
The ANZ/Roy Morgan weekly consumer sentiment measure plunged 27.8 per cent during the week to its lowest in 30 years as consumers increasingly shun the shops.
Confidence is 17 per cent below the depths reached during the global financial crisis.
The morning rise on the ASX doesn’t counter falls of more than 5.5 per cent on Monday, which left the local bourse at its lowest level since December 6, 2012, and down 36.8 per cent since February 20.
The week started with a fresh wave of panic selling as investors were rattled by businesses and state and territory borders closing amid stricter measures to control the pandemic.
Gold miners were early gainers on Tuesday after the price of gold rose again overnight.
Newcrest lifted $1.97, or 8.67 per cent, to $24.70 while Northern Star added $1.16, or 10.57 per cent, to $12.13.
The big banks all grew, ANZ lifting 16 cents to $14.26 as Commonwealth bank gained $1.04 to $55.30, NAB advanced 13 cents to $14.01 and Westpac added seven cents to $14.17.
Woolworths lost 61 cents to $35.84 after it said venue closures, and changes to shopping behaviour at its supermarkets, meant it could not estimate the impact of the virus on its full year financial results.
Coles lost 13 cents to $15.45 as the supermarket rivals were given leave to work together to ensure supplies to everyone.
Seven West Media gained 0.2 cents to 0.067 cents after it said the postponing of the Olympics and AFL competition, along with a falling advertising market, means it must scrap its earnings guidance.
Michael Hill Jeweller was untraded at 1030 AEDT after it postponed its interim dividend payment of 1.5 cents per share for six months.
US markets were also lower even after the Federal Reserve’s second wave of rescue actions that included bond buying to ensure liquidity.
“More could be done in the US though, with congress again failing to pass a stimulus deal, just as the World Health Organisation warms that the global infection rate is escalating, NAB’s morning call note says.
The Australian dollar was buying 58.56 US cents at 1030 AEDT, up 58.01 from at Monday’s close.