The Australian share market has risen for the sixth time in seven days. The S&P/ASX 200 index rose by 85 points or
1.2 per cent. Over January, the ASX 200 has so far lifted 3.4 per cent, offsetting the losses recorded in December.
The Aussie share market again followed the positive lead from overseas markets. US share indexes rose between 0.8-
1.8 per cent on Wednesday and European markets lifted around 0.4 per cent.
Global share indexes are rallying on the hope that US data released on Thursday will show further easing of inflationary pressures. The re-opening of the Chinese economy is adding to investor optimism.
In Australia on Thursday there were gains in all of the 12 industry sectors. Financials rose 1.5 per cent with Materials
up 1.4 per cent and Energy rose by 1.3 per cent.
Shares in iron ore producers rose on news that the iron ore price had risen another 1.1 per cent on Wednesday. Shares in Fortescue Metals (FMG) rose by 2.8 per cent.
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Shares in Gold Road Resources (GOR) fell by 3.0 per cent. GOR said that production from the Gruyere mine met
guidance in the 2022 year. But analysts were disappointed with December quarter production results.
Shares in MA Financial (MAF) fell by 10.7 per cent after indicating that earnings per share were likely to have fallen
short of guidance in calendar 2022.
On Thursday, 2.5 billion shares were traded, worth $6.2 billion. Overall 812 stocks rose over the session, while 539
fell and 429 finished unchanged.
In terms of economic data, the trade surplus rose by $458 million in November to a record $13,201 million. In China, consumer prices were flat in December to be up 1.8% on the year – in line with forecasts.
The US Consumer Price Index for December will be released later tonight. And the US earnings season (profit reporting period) starts on Friday.
Originally published by Craig James – Chief Economist (Author), CommSec