Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Australian shares track regional gains after Fed cut; NZ up

Published 19/09/2019, 12:52 pm
© Reuters.  Australian shares track regional gains after Fed cut; NZ up

* Financials boost benchmark

* Energy stocks recoup losses from last session

* Miners lead losses

By Nikhil Subba

Sept 19 (Reuters) - Australian shares inched up on Thursday, mirroring regional gains after the U.S. Federal Reserve lowered interest rates as expected, but offered mixed signals on their next move, nudging markets to step cautiously.

The S&P/ASX 200 index .AXJO rose 0.7% or 48.2 points to 6,729.80 by 0252 GMT. The benchmark shed 0.2% on Wednesday.

Fed Chair Jerome Powell said the central bank was prepared to be "aggressive" if necessary, but signalled a higher bar to further reductions, which would be based on data and the health of the economy. U.S. Fed is moving just a little and is taking precautions, because if they move too quickly, they could have consequences the other way," said Doug Symes, senior client adviser at Novus Capital. "And because of the conservative rhetoric, it leaves the market second guessing whether rates cuts have finished."

The Australian benchmark was helped by a near 1% gain in the finiancial sub-index .ACFJ , with the "big four" banks all trading higher.

Investment bank Macquarie Group MQG.AX , which has a U.S.-revenue base, rose about 1.5% to its highest level since May 2.

Energy stocks .AXEJ recouped losses from the previous session and firmed about 0.2% as heightened Middle East tensions kept oil prices elevated after the attacks on refineries in Saudi Arabia. and gas heavyweights Santos Ltd STO.AX and Oil Search OSH.AX each rose about 0.4%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In the technology sector, the subindex was boosted by a 4% rise in software company Altium Ltd ALU.AX and Wisetech's WTC.AX near 2% climb .AXIJ .

Bucking the trend, the mining sector .AXMM was dragged lower by gold stocks, after the precious metal's prices fell in light of the U.S. Fed's mixed signals, with gold explorers Silver Lake Resources SLR.AX and Saracen Mineral SAR.AX as top losers.

Miners were also hit by lower iron ore, which were dragged lower by increasing supply in China, while copper prices slipped as concern about demand and economic growth dominated sentiment.

New Zealand's benchmark S&P/NZX 50 index .NZ50 advanced 0.1%, or 15.1 points, to 10,789.99.

Fuel distributor Z Energy ZEL.NZ climbed as much as 5.6% in its best session since late April, 2016, while NZX Ltd NZX.NZ rose as much as 1.6%.

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.