Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Australia shares rebound on U.S. optimism, energy stocks down

Published 07/12/2015, 12:05 pm
Updated 07/12/2015, 12:10 pm
© Reuters.  Australia shares rebound on U.S. optimism, energy stocks down
AXJO
-
BHP
-
CBA
-
BHPB
-
STO
-
WDS
-

SYDNEY/WELLINGTON, Dec 7 (Reuters) - Australian shares staged a broad rebound on Monday as a solid rise in U.S. payrolls cheered investors, but weakness in oil prices weighed on the energy sector.

U.S. nonfarm payrolls increased 211,000 in November, a healthy outcome that helped sooth jitters about a U.S. interest rate hike later in the month.

The S&P/ASX 200 index .AXJO rose 49.09 points, or 0.95 percent, to 5,200.70 by 0028 GMT. It was up as much as 1.5 percent earlier in the session.

Yet, the benchmark has only managed to reverse some of Friday's 1.5 percent decline, leaving it back in the middle of a well-worn range.

"There is no clear direction or any real conviction in being short or long," said Evan Lucas, market strategist at IG.

With the year-end looming and uncertainty over the effect of the Fed's first rate hike in nearly a decade, many investors are taking a cautious approach.

The big four banks were all higher on Monday, led by a 1.6 percent rise in Commonwealth Bank of Australia CBA.AX . BHP Billiton (L:BLT) BHP.AX climbed 0.8 percent.

The notable underperformer was the oil & gas sector, which remained under a cloud after OPEC members failed to agree on a production ceiling, meaning supply could continue to depress oil prices.

Santos STO.AX fell 7.1 percent, while Woodside Petroleum WPL.AX slipped 1.7 percent.

New Zealand's S&P/NZX 50 index was relatively flat after falling 0.5 percent in Friday's session. The benchmark inched up 0.03 percent, or 1.81 points, to 6,096.63.

New Zealand subsidiaries of Australian banks were among the biggest gainers, with Westpac WBC.NZ rising 1.2 percent.

Telecommunication company Spark NZ SPK.NZ eased 0.3 percent after announcing it was acquiring privately-owned IT infrastructure company CCL.

Contact Energy CEN.NZ fell more than 5.0 percent to its lowest in over a year after the electricity company said its commercial and industrial sales volume for November was lower than last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.