👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Australian shares end marginally higher ahead of budget

Published 06/10/2020, 04:42 pm
Updated 06/10/2020, 04:48 pm
© Reuters.
AXJO
-
STO
-
WDS
-
SAR
-
AXGD
-
AXEJ
-
AXFJ
-
AXIJ
-
NST
-
NZ50
-
APT
-

* RBA policy decision 'non event', already priced in - analyst

* Gold stocks close 3.2% higher

* Financials bounce back from early losses, end 0.3% higher (Updates to close)

By Arundhati Dutta

Oct 6 (Reuters) - Australian shares ended slightly higher on Tuesday, after wavering between small gains and losses throughout the session, as the central bank held key rates steady ahead of the Federal budget later in the day.

The S&P/ASX 200 index .AXJO closed up 0.2% at 5952.7. The benchmark had gained 2.6% on Monday.

"We had our rally yesterday, so there's not much movement today despite the big lead from the U.S.," said Brad Smoling, managing director at Smoling Stockbroking.

U.S. stocks had risen sharply on Monday, after news that President Donald Trump will return to the White House from the hospital where he was being treated for COVID-19. .N

The Reserve Bank of Australia left its cash rate at a record low on Tuesday - in line with a Reuters poll - but hinted at further monetary easing as the country grapples with the worst contraction since the Great Depression. says RBA's decision was expected and already factored into the pricing, so markets viewed it as a "non event", adding that he does not expect Wednesday's markets to react to the budget either, set to be announced later in the day.

"Unless there's something surprising, I really don't anticipate much change, " he said.

Gold stocks .AXGD gained after miners Northern Star Resources NST.AX and Saracen Mineral Holdings SAR.AX said they would merge to create a create a global top-10 gold miner by market value. rally in energy stocks .AXEJ after oil prices rose also lifted the benchmark. Sector heavyweights Woodside Petroleum WPL.AX and Santos STO.AX were among the top boosts. O/R

Technology stocks .AXIJ jumped 2.3%, led by Afterpay's APT.AX 4.8% rise, while financials .AXFJ rebounded after early losses and closed 0.3% higher.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 closed 0.6% higher at 11,975.02.

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.