Australia: Market extends gain on steady commodities

The Australian market finished higher for third straight session on Friday, 26 March 2021, supported by increased optimism for the outlook of the U.S. economy following data showing an improved labor environment and momentum with vaccine rollouts.

At closing bell, the benchmark S&P/ASX200 climbed up 33.67 points, or 0.5%, to 6,824.23. The broader All Ordinaries rose 40.47 points, or 0.58%, to 7,063.09.

Risk appetite made a comeback across the world on economic-recovery bets after US President Joe Biden announced a new goal of administering 200 million coronavirus vaccinations within his first 100 days in office. The new goal is double the 100 million shots in 100 days that Biden initially pledged and was reached before his 60th day in office.

Federal Reserve Chairman Jerome Powell acknowledged Thursday that fiscal help from Congress and accelerated vaccine distribution has allowed the U.S. to recover faster than expected.

The US Labour Department data showed claims for unemployment benefits dropped to a one-year low last week, a sign that the US economy is on the verge of stronger growth as the public health situation improves and temperatures rise.

Local shares strengthened on the open and held on to gains throughout the day. Telecom led the market higher, up 1.29%. Miners also led the charge, with materials gaining 1.24%. All other sectors rose, except health care which declined 0.68%.

Shares of miners and oil and gas explorers gained as Chinese iron ore futures rose amid worries of supply shortages and oil prices stabilised after a sharp drop overnight. Rio Tinto and Fortescue Metals Group advanced 1.5% each. Woodside Petroleum rose 2.4% while Santos gained more than 1%.

CURRENCY NEWS: The Australian dollar changed hands at $0.7622, lower than levels around $0.774 seen earlier in the week.

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