Financial and technology shares support Australian shares -November 8, 2023 at 02:14

Australian stocks rose on Wednesday, helped by gains in financial and technology stocks, while commodity-related stocks fell as concerns over weak Chinese data and the US Federal Reserve’s stance on interest rates I swear weighed on the feeling.

The S&P/ASX 200 index rose 0.3% to 6,966 at 0040 GMT. It fell 0.3% on Tuesday.

China’s imports rose unexpectedly in October while exports contracted at a faster pace, reflecting a bumpy economic recovery for the world’s second-largest economy.

Concerns grew as Fed policymakers considered the need to raise interest rates to curb inflation in the face of concerns about U.S. incomes and economic growth.

In Sydney, the Reserve Bank of Australia (RBA) raised its interest rate by 25 basis points to 4.35% on Tuesday, ending four months of unchanged policy.

Financial stocks recovered from Tuesday’s declines, rising 1%. The “big four” banks also grew from 0.6% to 1.7%.

Technology stocks also rose 1.7%, reaching their highest level since October 17.

Shares in Australian-listed Block rose 3.3%, while Xero rose 2.3%.

Gold stocks fell 2.2% as gold weakened and were on track to post their biggest loss since October 3.

Evolution Mining and Northern Star Resources fell 1.5% each.

Mining companies fell 2.3%, marking their biggest decline in two weeks.

The sub-index tracked weak iron ore prices after China’s consumer-backed state exchange said it would limit futures trading volumes for industrial commodities.

Rio Tinto fell 3.2% and BHP Group fell 2.9%.

Among individual companies, shares of James Hardie Industries jumped 13.3% after the world’s largest fiber cement maker posted a record second-quarter profit due to rising selling prices and falling input costs.

New Zealand’s benchmark S&P/NZX 50 index fell 0.7% to 11,144.41.

Sky Network Television said it had ended takeover talks with third parties, sending its shares down 4.9%.

Leave a Comment