Australia Stocks gain on Dow's overnight rise

Headline equities of the Australia stock market inclined on Wednesday, 08 August 2018, as risk sentiments boosted up on following the positive cues from Wall Street overnight and better than expected earnings from Commonwealth Bank of Australia. Most of ASX subindexes inclined, with shares in financials, property trusts, and energy issues were notable gainers, while consumer staples, industrials, and utilities issues were notable losers. At closing bell, the benchmark S&P/ASX 200 Index inclined 14.56 points, or 0.23%, to 6,268.50. The broader All Ordinaries Index was up 14.06 points, or 0.22%, to 6,354.90.

Shares of banks and financials were up, with Commonwealth Bank of Australia leading rally, up as much as 5%, as its annual profit came slightly ahead of expectations. Australia's largest bank reported a 4.8 per cent fall in full-year cash profits to A$9.23 billion. Meanwhile, ANZ Bank, Westpac, and National Australia Bank were up in a range of 0.1% to 0.5%.

 

Shares of energy companies were higher, after crude oil prices rose overnight amid expectations that the U.S. sanctions on major oil exporter Iran will tighten global supply. WTI crude added $0.16 to close at $69.17 a barrel on the New York Mercantile Exchange.Among energy stocks, Santos and Oil Search were up in a range of 0.5% to 1%.

Shares of materials sector were also higher, after Dalian-traded iron ore, a key commodity for the global miner, extended gains into a fourth straight session and touched its highest in five months. Among miners, Rio Tinto, BHP Billiton, and Fortescue Metals were up in a range of 0.5-1%.

CURRENCY NEWS: The Australian dollar was little higher against greenback and other major currencies. The Australian dollar was at 73.9 US cents, from 73.95 US cents on Monday.

OFFSHORE MARKET NEWS, US stock market closed higher on Tuesday. The Dow advanced 126.73 points or 0.5% to 25,628.91, the Nasdaq climbed 23.99 points or 0.3% to 7,883.66 and the S&P 500 rose 8.05 points or 0.3% to 2,858.45.

The major European markets ended higher on Tuesday. The German DAX Index rose by 0.4%. The French CAC 40 Index and the U.K.'s FTSE 100 Index advanced by 0.8% and 0.7%, respectively.

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