Stocks, ASX: Share market climbs after Wall Street resets record high

The Australian stock market extended its gains on Thursday, benefiting from a record-breaking rally on Wall Street dominated by technology stocks.

At the local level, all 11 sectors of the S&P200 closed in positive territory. The index rose by 0.7 percent or 52.8 points to reach 7821.8. The broader All Ordinaries rose similarly, reaching 8074.3.

The Australian dollar closed higher, trading at 66.59 US cents against the greenback at 5 p.m.

Overnight, the S&P500 and the technology-dominated Nasdaq Composite on Wall Street reached their record highs again, rising by 1.2 percent and 2 percent respectively. The Dow gained 0.2 percent.

Bond markets also reacted to the Bank of Canada’s interest rate cut overnight, with the yield on the 10-year U.S. Treasury note falling below 4.3 percent – its lowest level since March.

The money markets have already priced in two interest rate cuts by the US Federal Reserve before the end of the year.

Driven by a rally on the Nasdaq, technology stocks led the benchmark, gaining 1.4 percent. Wisetech rose 2.8 percent to $100.22, Xero climbed 1.8 percent to $128.20 and NextDc rose 1.1 percent to $17.89.

The recovery was also driven by financial stocks, which rose 1 percent. CBA led the way among the four big banks, up 1.1 percent to $124.85. NAB rose 0.6 percent to $35, Westpac climbed 0.8 percent to $26.97 and ANZ rose 1 percent to $29.06.

“Financials are causing a lot of grief for the analyst community – they have only just missed the highs seen before the global financial crisis,” said Tony Sycamore, market analyst at IG Australia.

“If they were closed, we could still do it in the next day or two.”

Commodity stocks also rose, with iron ore futures recovering from a six-month low to trade at $108.95 a tonne. The sector’s heavyweights were mixed, with BHP up 0.3 per cent to $44.05, while Fortescue slipped 0.3 per cent to $24.06 and Rio Tinto fell 0.9 per cent to $124.51.

Although the Brent price rose to $79 per barrel, energy stocks stagnated. While Woodside fell 0.1 percent to $27.11, Santos rose 0.3 percent to $7.52.

In corporate news, IDP Education fell 7.5 percent to $14.51, among the laggards. National accounts figures on Wednesday confirmed that the federal government’s crackdown on international students entering the country will lead to significant business losses, the company warned.

Auckland-based casino operator SkyCity fell 13.7 percent to $1.39 after cutting its forecast to NZ$120 million-NZ$125 million as profits were weaker than expected and suspending its dividend payment as the “ongoing difficult economic environment impacts customer spending.”

Fund manager Magellan rose 1.3 percent to $8.45 after announcing that funds under management rose $400 million to $35.7 billion.

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