Australia Market gains on US-China deal hopes

Headline indices of the Australian financial market closed higher on Tuesday, 19 February 2019, as investor risk appetite increased on US-China deal hopes as the two countries prepared to continue negotiations. Trade was in a narrow range amid a lack of major trading incentives as New York markets were on Monday shut for Presidents' Day, and thin European trading volumes reflected the absence of US investors on the holiday. At closing bell, the benchmark S&P/ASX200 index finished up 17.1 points, or 0.28%, at 6,106.9 points, while the broader All Ordinaries was up 13.5 points, or 0.35%, at 6,184.2.

Risk appetite buying supported on hopes for a trade deal between the United States and China, as the world's two largest economies will resume talks in Washington later in the week. Top-level officials from the world's two biggest economies will reconvene in Washington after a series of negotiations in Beijing last week, with the US side telling Donald Trump they had been "very productive".

 

The finance sector was higher, with big four banks have propped up after a day of generally disappointing earnings results. The banks were led by ANZ, which was up 2.28% to $27.35. Westpac, NAB and CBA gained between 0.99 and 1.65%.

Among individual stocks, Blackmores plummeted 24.85% after the vitamin maker warned its sales in China were not expected to grow within the next six months.

Hearing implant company Cochlear was down 8.14% after it said its growth in the US and Germany had slowed.

Coles was down 4.05% after it reported first-half profit had slipped 29% to $381 million in the wake of its spin-off from Wesfarmers.

Seven West Media was down 7.96% after reporting half-year net profit fell 13.8% amid lower advertising revenue.

Software-as-a-service company Citadel Group shares fell 12.21% after it said its gross profit had fallen 0.6%, to $23.3 million.

CURRENCY: Australian Dollar was down against greenback and against a basket of other peers on Tuesday, following the release of the RBA's monetary policy meeting minutes. The Aussie dollar is buying 71.14 US cents, from 71.50 US cents on Monday.

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