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

Australia shares up, set for best week in a month on firmer financials

Published 14/07/2017, 01:08 pm
© Reuters.  Australia shares up, set for best week in a month on firmer financials
AUD/USD
-
US500
-
AXJO
-
OSH
-
ORG
-
STO
-
WDS
-
NG
-
AXEJ
-
AXFJ
-
SPSY
-

By Rushil Dutta

July 14 (Reuters) - Australian shares posted broadbased gains for a second straight session on Friday, and were on track for their best weekly performance in a month, as financials tracked their Wall Street counterparts higher ahead of big U.S. banks earnings.

The S&P/ASX 200 index .AXJO was 0.5 percent, or 27.37 points, higher at 5,763.70 by 0235 GMT after a 1.1 percent rise on Thursday. The benchmark has added over 1 percent so far this week, heading toward its strongest weekly rise since the week ended June 16.

The day's gains rode on a solid rise in energy and financial stocks, with the Australian energy index .AXEJ on track to record its best trading day since early May with a 2.4 percent rise.

Aussie energy sector bellwether Woodside Petroleum WPL.AX , an oil and gas explorer, climbed 2.1 percent boosted by overnight advances in oil prices, which came on the back of data showing stronger Chinese demand for crude. O/R

Smaller rivals Oil Search OSH.AX and Santos STO.AX rose about 1.7 percent each.

Origin Energy ORG.AX , which has significant natural gas interests, was also helped by the rise in oil, gaining 2.7 percent and thereby single-handedly pushing up the utilities sector.

The Australian financial index .AXFJ followed U.S. financials .SPSY higher as investors bought in before second quarter earnings kicked-off with three of the biggest U.S. banks reporting results. .N

"Our markets are looking ahead to the reporting (earnings)from the U.S. with a degree of optimism," said Tony Farnham, an economist with Patersons Securities.

A Reuters survey showed second-quarter earnings for S&P 500 companies rose 7.8 percent from a year ago, with financials projected to have had the third-best profit growth among sectors. Aussie big banks rose in a range of 0.7 percent to 1.2 percent and were the biggest contributors to overall gains.

Meanwhile, the second leg of U.S. Federal Reserve chief Janet Yellen's testimony, this time before a Senate panel, further buttressed her advocacy of a gradual rate of policy tightening. have seen Yellen's dovish tone as a green light for riskier trades on Wall Street.

New Zealand's benchmark S&P/NZX 50 index .NZ50 added 0.3 percent or 23.24 points to 7,634.13, and was on track for a fifth straight week of increases.

Gains were concentrated in consumer, utilities and financial shares with dairy products maker a2 Milk ATM.NZ and energy retail business Mercury NZ Ltd MCY.NZ the biggest advancers on the benchmark, up 1.5 percent and 3.3 percent, respectively.

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.