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Australia’s and All Ordinaries indices marked a fifth consecutive day of gains on Wednesday, propelled by an uptick in mining shares and expectations of a peak in US interest rates. Mining giants Rio Tinto (NYSE:), BHP, and Fortescue saw significant share price increases following reports of China considering additional sovereign debt to boost infrastructure spending and a recovery in iron ore prices. Rio Tinto shares rose 1.4% to A$113.79, BHP added 1.3% to A$44.73, while Fortescue rallied 1.6% to A$21.16.
The rally was also supported by energy stocks which edged higher as prices nudged upwards due to concerns over conflicts in the Middle East. The overall gains were also attributed to an anticipated Chinese stimulus package that is expected to benefit the mining sector.
On the other hand, Bank of Queensland shares took a hit, dropping by 4.5% following a severe annual profit decline and a dividend cut, marking its lowest level since June.
In corporate news, Qantas Airways’ shares rose following the announcement of the planned departures of its chairman Richard Goyder and two directors, leading to a 2.7% rally in Qantas’ shares to A$5.03.
Telecommunications company Telstra (OTC:) Group announced plans to acquire cloud consulting company Versent for A$267.5 million, leading to a minor share dip but ultimately advancing 0.8% to A$3.90.
Insurance Australia Group saw an addition of 0.6% after reconfirming its fiscal year 2024 guidance targets despite warnings of lower margins due to increased claim costs.
The Australian dollar weakened after consecutive gains, with Reserve Bank assistant governor Chris Kent suggesting possible monetary policy tightening. Meanwhile, US markets showed gains amidst falling bond yields and steady oil prices, with Federal Reserve officials Raphael Bostic and Neel Kashkari hinting at an interest rates policy shift towards a 2% target.
Australian bonds decreased while the Commonwealth Bank of Australia (OTC:)’s shares remained steady ahead of its annual general meeting.
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