🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Australian shares edge up on Fed rate signal; NZ hits new peak

Published 11/07/2019, 04:53 pm
Updated 11/07/2019, 05:00 pm
© Reuters.  Australian shares edge up on Fed rate signal; NZ hits new peak
AXJO
-
ANZ
-
NAB
-
RSG
-
WBC
-
AXGD
-
AXMM
-
AXEJ
-
AXFJ
-
NZ50
-
ATM
-

* Fed chairman "signed and sealed" rate cut - DBS

* Gold miners lead gains in Australia

(Updates to close)

July 11 (Reuters) - Australian shares climbed on Thursday buoyed by broad-based gains after Federal Reserve Chairman Jerome Powell cemented the chance of an ease in U.S. monetary policy later this month.

The S&P/ASX 200 index .AXJO advanced 0.4%, or 26.3 points, to 6,716.1 at the close of trade. The benchmark added 0.4% on Wednesday.

In his testimony before Congress, Powell on Wednesday said "that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. outlook." chair Powell just about signed and sealed an imminent Fed cut at the semiannual monetary policy report overnight," DBS Group Research said in a note to clients.

The remarks boosted gold prices, increasing buying interest in miners of the precious metal .AXGD which ended the session at a more than seven-and-a-half year high.

Resolute Mining Ltd RSG.AX had its best day since March 2, 2017 and was the top performer on the benchmark.

The wider mining index .AXMM also advanced, posting its sharpest gains in more than a week.

Meanwhile, strength in oil prices boosted energy stocks .AXEJ to their highest since July 2.

Financials stocks .AXFJ reversed from losses earlier in the session to edge higher.

No.4 lender National Australia Bank Ltd NAB.AX firmed 1% to a more than four-week peak.

However, Australia and New Zealand Banking Group Ltd ANZ.AX finished the session at an eight-week low.

Both lenders along with Westpac Banking Corp WBC.AX have been slapped with tougher capital requirements by the country's prudential regulator. [nL4N24B49Z

Elsewhere, New Zealand's benchmark S&P/NZX 50 index .NZ50 firmed 0.4%, or 37.18 points, to finish at a record close of 10,687.32.

Dairy firm a2 Milk Company Ltd ATM.NZ strengthened to a more than two-month high.

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.