Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Australian shares higher after Powell boosts rate cut bets; NZ up

Published 11/07/2019, 12:34 pm
Updated 11/07/2019, 12:40 pm
© Reuters.  Australian shares higher after Powell boosts rate cut bets; NZ up
AXJO
-
ANZ
-
NCM
-
STO
-
WBC
-
AXGD
-
AXMM
-
AXEJ
-
AXFJ
-
VAH
-
EVN
-
NZ50
-
ATM
-

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

* Gold miners best performers on the ASX

* Banks drop on capital requirements, prosecution risk

By Aditya Soni

July 11 (Reuters) - Australian shares ticked up on Thursday as investors took heart from higher odds for a U.S. rate cut this month, but gains were limited by weak banks facing tougher capital requirements and a crackdown on insurance products.

The S&P/ASX 200 index .AXJO rose 0.2% or 13.2 points to 6,703 by 0204 GMT. The benchmark added 0.4% on Wednesday.

Federal Reserve Chairman Jerome Powell on Wednesday set the stage for a monetary policy easing later this month, pledging to act to defend an economic expansion threatened by trade disputes and a global slowdown. 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 first Fed cut in a decade is likely within this quarter and could come as soon as end-July," DBS added.

Gold miners .AXGD soared to their highest peak in more than seven and a half years, the benchmark's best performer.

Bullion prices rose to their highest level in more than a week as the dollar fell after Powell's dovish remarks. GOL/

Newcrest Mining Ltd NCM.AX saw its best day in three weeks, while Evolution Mining Ltd EVN.AX was on track for its highest ever close.

The wider mining sector .AXMM also advanced, posting its sharpest gains since July 2.

Investors were also heavy buyers of energy stocks .AXEJ after a 4.5% jump in oil prices overnight. O/R

Santos Ltd STO.AX , Australia's second biggest independent oil and gas producer, saw its best day in more than a week.

Financials .AXFJ lost their footing after three of the "Big Four" banks were slapped with an additional A$500 million ($348 million) in capital requirements.

Adding to the sector's troubles, Australia's corporate regulator threatened to prosecute and ban consumer insurance products sold by some of the largest lenders because they had harmed customers. and New Zealand Banking Group Ltd ANZ.AX fell to a more than seven-week trough and was on track for its fifth consecutive session of losses, while bigger peer Westpac Banking Corp WBC.AX hit its lowest since July 3.

Shares of Virgin Australia Holdings Ltd VAH.AX dipped 2.9% after the airline said Affinity Equity Partners is seeking to exit its 35% minority stake in the Velocity frequent flyer programme. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 firmed 0.3% or 27.59 points to 10,677.72. The index touched a record high earlier in the session.

Dairy firm a2 Milk Company Ltd ATM.NZ firmed as much as 2.8% to its highest level since April 30.

($1 = 1.4370 Australian dollars)

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.