Australia Market drifts higher in quiet trade

The Australian share market finished shortened session edged up on Tuesday, 24 December 2019, ahead of the Christmas and Boxing Day public holidays, with market sentiments bolstered on improving Sino-US trade relations after China announced plans to lower tariffs on a range of U.S. products and President Donald Trump said an initial U.S.-China trade pact would be signed soon. At closing bell, the benchmark S&P/ASX200 index increased by 9.06 points, or 0.13%, to 6,794.20, while the broader All Ordinaries added 11.64 points, or 0.17%, to 6,906.40. Australia markets closed on Wednesday and Thursday for Christmas and Boxing Day public holidays.

Sydney market shares started higher, taking their lead from a record closing high on Wall Street on Monday after U.S. President Donald Trump calmed nerves by saying Washington is on track to sign a deal with Beijing to de-escalate a bruising trade war. Additionally, China's finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors. However, gains in local stocks were limited as the year-end holiday mood started to set in.

Shares of oil & gas producers advanced after the price of oil firmed a touch. Benchmark U.S. crude oil rose 8 cents to settle at $60.52 per barrel. Brent crude, the international standard, added 25 cents to close at $66.39 per barrel. Beach Energy (BPT) was up 3% while Woodside (WPL) climbed 0.9%.

Healthcare stocks were also higher. CSL Ltd (CSL) was the major contributor to gains for health stocks, lifting 1.3% and remaining near its record highs.

Gold miners were up with the price of the precious metal lifting in overnight trade. Gold Road (GOR) jumped 7.6%, Resolute (RSG) rose 5.9% while Northern Star (NST) was 1.6% higher. NST also opened its Share Purchase Plan (SPP) offer as it looks to raise up to A$50 million from retail investors to help fund a recent 50% stake in a WA gold mine.

Financials, tech and consumer names were among the major weights on the market today. Big names such as Commonwealth Bank (CBA) and the supermarket chains Woolworths (WOW) and Coles (COL) were the main drags. Meanwhile, Corporate Travel (CTD) ended 0.1% higher after announcing a takeover of a US-based travel business for up to A$53 million.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, inclined against greenback. The Australian dollar changed hands at $0.6918 after rising from levels around $0.69 yesterday.

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