Home » Australia Market rises on cooling US inflation data

Australia Market rises on cooling US inflation data

Australia stock market finished session sharply higher on Thursday, 16 May 2024, as risk appetite buying spurred by record high closes on Wall Street overnight after slightly softer than expected US consumer price index bolstered investors’ hopes of the Federal Reserve interest rate cuts in September.

Meanwhile, interest-rate sensitive stocks got further boost on easing concerns about the Reserve Bank of Australia rates hike after Australian Bureau of Statistics figures showing the nations unemployment climbed higher than expected last month.

All ASX sectoral indices climbed higher, exception being energy, with shares in realty, technology, consumer goods, and financial issues being notable gainers.

At closing bell, the benchmark S&P/ASX200 index spurted 127.59 points, or 1.65%, to 7,881.29. The broader All Ordinaries index was up 129.15 points, or 1.61%, to 8,150.06.

Total 10 of 11 sectors ended higher along with the S&P/ASX 200 Index. A-REIT was the best performing sector, gaining +3.48%, while energy sector was bottom performer, down 0.3%.

The best-performing stocks in S&P/ASX200 index were ARISTOCRAT LEISURE and CHARTER HALL GROUP, up 12.3% and 6.66% respectively. The bottom performing stocks in S&P/ASX200 index were STRIKE ENERGY and ARCADIUM LITHIUM, down 8.16% and 4.54% respectively.

Shares of Aristocrat Leisure spurted 12.3% after the company reported an almost 17% rise in profit to A$723.3 million for the six months ended March 2024, plus an increased dividend to shareholders.

Incitec Pivot shares lifted 2.5% after the firm flagged plans to sell its fertiliser business to Indonesian group, Pupuk Kalimantan Timur.

ECONOMIC NEWS: Australia’s Unemployment Rate Rises to 4.1% in April 2024- Australia’s seasonally adjusted unemployment rate increased to 4.1% in April 2024, up from a revised 3.9% in the previous month. This uptick, the highest since January, saw the number of unemployed individuals rise by 30.3 thousand to 604.2 thousand. While full-time job seekers increased by 13.7 thousand and part-time job seekers rose by 16.6 thousand, overall employment saw a positive trend, advancing by 38.5 thousand to 14.3 million. However, full-time employment declined by 6.1 thousand, contrasting with a rise in part-time employment by 44.6 thousand.

CURRENCY NEWS: The Australian dollar declined after data showed unemployment climbed higher than expected last month, easing pressure on the Reserve Bank of Australia to hike rates again.

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First Published: May 16 2024 | 3:02 PM IST