Australia Market gains 0.5%

Headline indices of the Australia market were higher on Thursday, 04 October 2018, following the overnight gains on Wall Street, with material and banks, energy stocks being notable gainers on bargain hunting and higher metal and crude oil prices. In late afternoon trade, the benchmark S&P/ASX200 index rose 33.03 points, or 0.54%, at 6,179.10 points, while the broader All Ordinaries index added 30.58 points, or 0.5%, to 6,295.80 points.

Shares of materials and resources companies were up on the back of stronger Aluminum metal prices. Aluminum prices climbed to their highest in more than three months on Wednesday after Norsk Hydro said it would halt output at its Alunorte alumina refinery in Brazil, stoking concerns about shortages of the raw material. Alumina was the biggest %age gainer among miners, rising as much as 14.7% to its highest in 10 years. BHP Billiton rose as much as 1.3% to after global miner said it sees a major boost in demand for copper as a result of China's Belt and Road Initiative. South32 was up as much as 7.1% on rising aluminum prices.

 

Energy stocks were supported by rising oil prices around four-year highs on upcoming U.S. sanctions on Iran, with Woodside Petroleum up 1.3%, Origin Energy up 2%, Oil Search up 1.4%, and Caltex up 1.1%.

Shares of banks and financial players were up on the back of rising US Treasury yields, led by the Big Four, with Westpac Banking Corp at the forefront, rising 1.2%, while Bank of Queensland shares rose nearly 4% despite posting a 5% profit loss for the year.

In economic news, the Australian Bureau of Statistics data revealed that Australia's trade surplus rose 4% to A$1.6 billion in August 2018. In seasonally adjusted terms, the balance on goods and services increased A$56m on July's surplus of A$1.55 billion, with total exports rising by 1%, or A$185m, to A$36.56 billion helped by strong commodity prices and a weaker Australian dollar.

CURRENCY: Australian Dollar declined against greenback and other major currencies on Wednesday. The Australian dollar was quoted at 70.95 US cents on Thursday, downfrom Wednesday's close of 71.81 US cents.

OFFSHORE MARKET NEWS, US stock market closed higher on Wednesday. The Dow Jones Industrial Average rose 54.45 points or 0.2% to 26,828.39, the Nasdaq climbed 25.54 points or 0.3% to 8,025.08 and the S&P 500 inched up 2.08 points or 0.1% to 2,925.51.

The major European markets ended stronger on Wednesday. The French CAC 40 Index and the U.K.'s FTSE 100 Index climbed 0.4% and 0.5%, respectively. The German markets were closed for a holiday.

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