Australia Market rebounds 0.6%

The Australian share market finished session higher on Friday, 02 July 2021, as sentiment was buoyed by Wall Street's upbeat lead after data showed new applications for U.S. unemployment benefits had dropped significantly, ahead of the release later today of key U.S. non-farm payroll data for June.

However, market gains capped amid concerns over the highly contagious Delta variant in three state capital cities, with nearly half of all Australians under strict stay-at-home orders.

At closing bell, the benchmark S&P/ASX200 was up 42.98 points, or 0.59%, to 7,308.55. The broader All Ordinaries rose 45.53 points, or 0.6%, to 7,587.07.

Shares of energy companies gained, benefiting from a 2% jump in oil prices. Woodside Petroleum added 1.9% and fuel supplier Ampol Ltd gained 0.8%.

 

Shares of banks and financials were also higher, with Westpac Banking Corp, Commonwealth Bank of Australia, National Australia Bank, and Australia and New Zealand Banking Group rising between 0.6% and 1%.

Shares of materials and resources were also higher, with global miner BHP Ltd and Fortescue Metals Group rising about 0.3% each.

ECONOMIC NEWS: Australia's manufacturing Purchasing Managers' Index fell to 58.6 in June from a record 60.4 in May, survey data from IHS Markit showed on Thursday. A score above 50 indicates expansion in the sector. The flash reading was 58.4. Output and new orders rose for the twelfth month in row in June. Export orders increased for the fourth straight month, albeit at a softer rate. Suppliers' delivery times lengthened to the greatest extend since April last year and backlogs of work increased at a softer pace in June. The rate of job creation declined marginally. On the price front, input prices and output prices increased in June, albeit at a slower rates.

CURRENCY NEWS: The Australian dollar changed hands at $0.7457 following its slip from above $0.755 earlier in the trading week.

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