Australia Market closes 0.8% up

The Australian share market advanced for third day in a row on Tuesday, 26 November 2019, as the market mood bolstered by Wall Street's record closing highs overnight and signs of new momentum in Beijing's and Washington's efforts to end their long and acrimonious trade dispute. At closing bell, the benchmark S&P/ASX200 index added 56.09 points, or 0.83%, to 6,787.50, while the broader All Ordinaries grew 54.23 points, or 0.79%, to 6,889.80.

Investors were encouraged by positive comments from US President Donald Trump, Chinese President Xi Jinping and Chinese state-owned media about the chance for an imminent trade deal. A Chinese state-backed tabloid said Beijing and Washington were very close to an initial pact. The report came on the heels of comments over the weekend by a top U.S. official that an agreement was still possible by the end of the year, dampening worries the negotiations could spill over into 2020.

The United States has imposed tariffs on Chinese goods in a 16-month long dispute over trade practices that the US government says are unfair. China has responded in kind with its own tariffs on US goods. If both sides cannot reach an agreement soon, the next important date to watch is Dec. 15, when Washington is scheduled to impose even more tariffs on Chinese goods.

Shares of financials advanced, with Westpac Bank (WBC) up 2% after Australia's second largest bank announced that CEO Brian Hartzer will be stepping down next Monday while chairman of the board Lindsay Maxsted will bring forward his retirement to mid-2020 once a permanent CEO is found. Current CFO, Peter King will fill in as interim CEO.

The Bank of Queensland (BOQ) fell 6% as it resumes trade after raising A$250 million from institutional clients at a 10% discount to its previous closing price. BOQ will still raise a further A$25 million from retail clients as it looks to strengthen its balance sheet and add to its capital buffers.

Energy stocks were also improved, aided by a higher oil price. Caltex (CTX) jumped 12% after being in a trading halt for the first hour of trade. The fuel supplier confirmed that it has received an improved A$8.6 billion conditional takeover offer at A$34.50/share. CTX shares also firmed 7% yesterday on a business update.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, eased against greenback. The Australian dollar changed hands at $0.678 after slipping from highs above $0.679 in the previous session.

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