Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Australian shares hit five-month high on hopes of less aggressive Fed

11/11/2022 | 01:06am EST

*

U.S. CPI data cooler than expected

*

Benchmark index hits highest since June 8

*

Miners hit highest level since June 16

Nov 11 (Reuters) - Australian shares rose nearly 3% on Friday, joining a global rally as cooler-than-expected U.S. inflation data raised hopes that the Federal Reserve would scale back its hefty rate hikes.

The S&P/ASX 200 index closed 2.8% higher at 7,158, hitting its highest in five months, in broad-based buying. The index rose 3.9% to record a third straight weekly gain.

U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, the strongest signs yet that inflation was slowing.

"We have seen this before that the inflation number is better than expected, but continues as a one-off," said Azeem Sherrif, a market analyst at CMC Markets.

Sherrif said consistency needed to have a positive sentiment towards inflation actually coming down.

Heavyweight miners gained 3.8%, as iron ore prices jumped after China stressed the need to minimise COVID-19's impact on the economy, raising hopes for a more targeted approach to contain outbreaks.

BHP Group, Rio Tinto and Fortescue Metals Group climbed between 3.8% and 5.8%.

Tech stocks tracked Wall Street gains to close 5% higher, with the ASX-listed shares of Block Inc jumping 11.5%.

Financials soared 2.1%, with the "big four" banks gaining between 1.1% and 2%.

Westpac Banking Corp and National Australia Bank have quietly relaxed some home lending standards, banking and mortgage-broking sources said.

Energy stocks gained 0.7%, as crude oil prices bounced back following the U.S. inflation data and on hopes that sturdy demand will offset new COVID restrictions in China.

Woodside Energy and Beach Energy climbed 1.4% and 3.5%, respectively.

Among individual stocks, Ramsay Health Care jumped 5.8% after the country's largest private hospital operator issued optimistic outlook for 2023 and 2024 fiscal years.

New Zealand's benchmark S&P/NZX 50 index jumped 2% to 11,311.76. For the week, it gained 0.7%. (Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 1.11% 0.71339 Delayed Quote.3.58%
BEACH ENERGY LIMITED -1.99% 1.48 Delayed Quote.-5.33%
BHP GROUP LIMITED 0.34% 49.55 Delayed Quote.8.22%
BLOCK, INC. 2.67% 84.26 Delayed Quote.26.97%
BRENT OIL -2.60% 83.32 Delayed Quote.-1.80%
BRITISH POUND / US DOLLAR (GBP/USD) 0.61% 1.23882 Delayed Quote.2.10%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.12% 0.75269 Delayed Quote.1.22%
EURO / US DOLLAR (EUR/USD) 1.17% 1.09964 Delayed Quote.1.38%
FORTESCUE METALS GROUP LIMITED 0.40% 22.33 Delayed Quote.8.43%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.10% 0.012213 Delayed Quote.1.53%
NATIONAL AUSTRALIA BANK LIMITED -0.19% 31.73 Delayed Quote.5.76%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.87% 0.64955 Delayed Quote.1.86%
RAMSAY HEALTH CARE LIMITED -0.72% 66.14 Delayed Quote.2.97%
RIO TINTO PLC -1.85% 6202 Delayed Quote.8.99%
S&P GSCI CRUDE OIL INDEX -3.42% 418.5026 Real-time Quote.-2.93%
S&P/ASX 200 0.33% 7501.7 Real-time Quote.6.22%
WESTPAC BANKING CORPORATION -0.51% 23.6 Delayed Quote.1.58%
WOODSIDE ENERGY GROUP LTD -1.41% 35.75 Delayed Quote.2.31%
WTI -2.88% 77.169 Delayed Quote.-3.04%
Latest news "Economy"
03:19pU.S. House Republicans to pursue impeachment of top Biden border official
RE
03:17pCalifornia lawyer Tom Girardi charged with stealing client funds
RE
03:16pFed's Powell: If economy meets expectations, unlikely to see rate cuts this year
RE
03:15pGrupo Mexico clears major Citi deal hurdle with $5 bln debt package -sources
RE
03:13pFed's Powell: Prospect of U.S. soft landing remains alive
RE
03:10pLate Subway co-founder's stake donated in potential tax shield
RE
03:08pSpot gold continues to climb; up by around 1%…
RE
03:07pU.s. stocks extend gains in late trading; s&p 500 up 1.1%, nasda…
RE
03:05pFront Month Nymex Natural Gas Fell 8.05% to Settle at $2.4680 -- Data Talk
DJ
03:04pFed's Powell: No one should assume Fed can protect economy in debt default
RE
Latest news "Economy"