The Aussie market is taking Wall Street’s lead in recovering from falls in the previous session as tensions ease between the US and Iran. The ASX 200 is rising 68 points or 1% after midday with the benchmark index getting with a few points of its all-time high of 6893 earlier in the day. The broader All Ordinaries index also broke through 7,000 points for the first time.
Improvements have been rather broad based as tech, financial and consumer stocks stage a comeback. The energy and gold stocks have been the major laggards, in what has been mostly a reversal of yesterday’s performance, where those stocks were the standouts.
Overnight, oil fell by as much as 5% in response to a perceived de-escalation in the Middle East. Oil Search (OSH) is down 1.8% while Santos (STO) is 0.7% weaker. With investor appetite for risk returning, the safe haven of gold has eased. Gold miners are among the largest declines in percentage terms. Northern Star (NST) is falling 3.4% while St Barbara (SBM) is down 2.3%.
Other mining names are among the most improved with lithium miners. Pilbara Minerals (PLS) is jumping 5.8% while Galaxy Resources (GXY) and Orecobre (ORE) are both 5% higher. The large iron ore miners are also contributing to broader advances with BHP Group (BHP), Rio Tinto (RIO) and Fortescue Metals (FMG) all lifting at least 1%.
Meanwhile Banks are also a big part of the broader market moves with the big four all in positive territory. The Commonwealth Bank (CBA) is leading the way with a gain of 1.1% while National Bank (NAB) follows closely behind, lifting 0.8%.
The tech and healthcare sectors are the most improved, CSL Ltd (CSL) is leading the way for health with a rise of 1.7%. Buy-now pay-later provider Afterpay (APT) is helping to lift the tech sector as it climbs 2.3%.
The Aussie dollar remains just above 68.7 US cents with Australia’s trade balance widening to $5.8 billion from 4.075 billion in October.
So far, 1.1b units have traded worth $2.3b with 654 stocks higher, 332 lower and 299 unchanged.
Published by CommSec