Australia Market rises more than 3%

The Australian share market finished session sharp higher on Thursday, 09 April 2020, tracking gains on Wall Street overnight on hopes the coronavirus crisis might be easing in the hardest-hit areas. Meanwhile, positive comments about the strength of Australian lenders by the central bank also boosted sentiment. At closing bell, the benchmark S&P/ASX200 index advanced 180.37 points, or 3.46%, to 5,387.32. The broader All Ordinaries increased 180.61 points, or 3.43%, to 5,439.41. For the week, the ASX gained 6.3%, eclipsing last week's gains of 4.7%.

The Australian stocks opened higher and remained firmer in the session, on the back of an overnight rise on Wall Street, after New York Governor Andrew Cuomo said the state's efforts at social distancing were working in getting the virus under control. Stocks gained an additional lift in the wake of Sanders' decision to drop his campaign for the White House. Sanders' embrace of a Medicare for all healthcare policy would have essentially abolished private insurance and had cast a shadow over healthcare stocks for months. Now that Sanders is out, former US Vice President Joe Biden is now widely considered the man likely to face off against President Donald Trump. Wall Street considers Biden to be a more market-friendly candidate.

 

Adding to the relief, the Reserve Bank of Australia said banks were well-positioned to withstand the coronavirus-driven economic slump, although it flagged some potential weaknesses in the property market.

The big banks clawed back some of yesterday's losses following their double whammy of a Fitch ratings downgrade and APRA advice to cut dividends. ANZ gained 6.6%, NAB rose 4.8%, Westpac gained 4.7%, and Commonwealth climbed 3.3%. Macquarie Group rose 7.1%.

Shares of mining sector were also higher, with BHP gaining 0.6%, Rio Tinto rising 0.2%, and Fortescue climbing 0.8%. Mineral sands producer Iluka Resources gained 2.4% after withdrawing its 2020 guidance.

Energy stocks gained on improved oil prices, which were buoyed by hopes that OPEC and its allies would strike a production cut agreement on Thursday. Woodside Petroleum, Beach Energy, Oil Search, Santos and Origin energy were up by between 3.8% and 8%.

Blood products giant CSL, gained 5.5% to $329 after reaffirming its full-year guidance of A$3.4 billion to A$3.48 billion.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 100.134 after seeing an earlier low of 99.992. The Australian dollar changed hands at $0.6233 after touching an earlier low of $0.6193.

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