The Australian market opened modestly higher today ahead of the Reserve Bank of Australia's interest rate decision. Material and mining shares continued their losing streak in early trade due to the mining tax concerns. But Wall Street's solid gains overnight helped to support the Australian shares with improving US economic data.
Australian shares posted a strong gain on Wednesday while Wall Street and Asian markets picked up on a brightened outlook and higher commodities prices. The local market was also lifted by a bunch of upbeat profit results. At the close, the benchmark S&P/ASX200 index surged 100.1 points, or 2.2 per cent, at 4667.9, while the broader All Ordinaries index jumped 96 points, or 2.1 per cent, to 4686.8.
Wall Street maintained its positive run on Wednesday session as the Federal Reserve officials tipped that the central bank could keep interest rate at historical low level. The Chinese economic data released yesterday also added confidence to global recovery hopes. European markets also rallied on low interest rate expectations.
Overnight Wall Street was up on economic data, positive earnings and the nomination of Federal Reserve chief Ben Bernanke to serve a second term. The Conference Board's August index of consumer confidence rose for a second month, exceeding economists' forecast.
The Australian shares Wednesday posted a strong gain boosted by miners and banks. The upbeat data on consumer confidence and housing finance also helped to lift the local market. The benchmark S&P/ASX200 index rose 89.5 points, or 2.27 per cent, to 4024.4, and the broader All Ordinaries index surged 82.7 points, or 2.1 per cent, at 4016.3.
Australian share closed at their five-year low point. The benchmark S&P/ASX200 was down 0.1%, or 4.1 points, at 3327.5, while the broader All Ordinaries index also fell 0.1%, or 3.5 points, at 3281.5.
The Australian share market closed higher on Tuesday, as the central bank's interest rate cut bolstered the financial stocks. The benchmark S&P/ASX200 index ended up 11.3 points, or 0.32 per cent, at 3,508.7 while the broader All Ordinaries index was 5.6 points stronger, up 0.16 per cent, at 3,449.1. Today investors may focus their attention on the earnings report of BHP Billiton and the decision by the four major banks after RBA's rate cut.
The Australian share market yesterday closed around 3% higher. The benchmark S&P/ASX200 index was up 101.3 points, or 3.03 per cent, at 3444, while the broader All Ordinaries index lifted 92 points, or 2.79 per cent, to 3392.3. With the positive lead of Wall St. the market is expected to continue its upward movement today.
Australian shares have closed below 4000 points after business confidence sank to a record low. Analysts said the market with thin trading volumes was plagued by the negative sentiment concerning global recession. Resources sector would lead the market lower as oil prices fell below $US60.
Yesterday, the Australian share market closed at a fresh three-year low, plummeting 5% as the continuing fallout from the global credit crisis wiped A$56 billion from the value of stocks. The benchmark S&P/ASX-200 share index lost 5% yesterday, the biggest one-day fall for both major stock exchange indices since January 22 this year. RBA has said the Australian economy is slowing faster than originally anticipated. Analysts said the sell-off is totally unemotional. Markets across Asia also slumped with 5-10% drop in Tokyo, Hong Kong, Singapore, Mumbai and Jakarta.