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Australia Stocks extend gains to third day

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Capital Market
Last Updated : Dec 03 2020 | 4:31 PM IST
The Australian share market managed to finish higher for third day in row on Thursday, 03 December 2020, after swinging between gains and losses throughout the session. The risk appetite buying was propelled by lifting of border curbs in the country's two most populous states, with heavyweight energy and mining firms leading the charge.

At closing bell, the benchmark S&P/ASX200 inclined 25.07 points, or 0.38%, to 6,615.27. The broader All Ordinaries added 35.97 points, or 0.53%, to 6,827.27.

Mining stocks gained as iron ore continued to lift and is now closing in on seven year highs. Fortescue Metals Group (FMG) added 13.3%. BHP Group (BHP) rose 4.9% and Rio Tinto (RIO) gained 6.9%.

Energy stocks were boosted by commodity prices with oil prices rising on a drop in US supply. Origin Energy, Oil Search, Santos and Woodside Petroleum rose 1-2 percent after crude oil prices rebounded overnight.

Banks ended with modest losses, while conglomerate Macquarie Group edged up slightly after announcing its agreement to buy U.S.-based investment management firm Waddell & Reed Financial Inc for $1.7 billion in cash.

ECONOMIC NEWS: Australia Posts A$7.456 Billion Trade Surplus In October- Australia merchandise trade surplus came in at A$7.456 billion in October, the Australian Bureau of Statistics said on Thursday, up from the upwardly revised A$5.815 billion surplus in September (originally A$5.630 billion). Imports were up A$178 million or 1.0 percent on month to A$28.264 billion following the downwardly revised 6.5 percent slide in September. Exports climbed A$1.819 billion or 5.0 percent on month to A$35.720 billion, up from the downwardly revised 2.6 percent gain in the previous month. Also on Thursday, the ABS said that the value of owner-occupied home loans issued in Australia was up a seasonally adjusted 0.8 percent on month in October, coming in at A$17.39 billion. That follows the 6.0 percent jump in September.

CURRENCY NEWS: The Australian dollar changed hands at $0.7428, following levels below $0.738 seen yesterday.

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First Published: Dec 03 2020 | 4:11 PM IST

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