Australia Market gains after consumer confidence data

The Australian share market finished session higher after recouping earlier losses on Wednesday, 14 July 2021, as risk sentiments improved after data showed an improvement in consumer confidence. However, market gains capped amid the worsening domestic coronavirus situation in New South Wales and after unexpectedly high U.S. consumer price index data for June fueled wariness over rapid inflation.

At closing bell, the benchmark S&P/ASX200 advanced 22.64 points, or 0.31%, to 7,354.70. The broader All Ordinaries added 19.61 points, or 0.26%, to 7,631.80.

Total 9 of 11 sectors ended higher along with the S&P/ASX 200 Index. Utilities (up 3.36%) was top performing sector, followed by consumer staples (up 0.94%), consumer discretionary (up 0.7%), and materials (up 0.67%) sectors. Information technology (down 2.74%) was worst performing sector.

The best performing stocks in the S&P/ASX200 were Spark Infrastructure Group (up 7.82%), Blackmores (up 6.17%), Ramelius Resources (up 5.1%), APA Group (up 4.27%), and Evolution Mining (up 4.1%), while the bottom performing stocks were ZIP Co (down 11.38%), Afterpay (down 9.59%), Lynas Rare Earths (down 5.62%), Polynovo (down 4.56%), and Flight Centre Travel Group (down 3.39%).

Market participants remain concerned amid the worsening domestic coronavirus situation in New South Wales. NSW health authorities reported 97 new coronavirus cases on Tuesday, with the lockdown in Greater Sydney extended for at least another two weeks until July 30 amid the spread of the highly contagious coronavirus variants to previously unaffected areas. Victoria recorded 1 new case overnight.

Shares of tech players declined, with Afterpay and Zip being notable losers on news that Apple is working on a new service that will let consumers pay for any Apple Pay purchase in instalments over time, rivalling the "buy now, pay later" offerings.

ECONOMIC NEWS: Australia Westpac Consumer Confidence Stays Firm In July- Australia consumer confidence remains firm in July, the latest survey from Westpac Bank showed on Wednesday as its sentiment index gained 1.5% to a score of 108.8, up from 107.2 in June. Confidence has held up overall despite a sharp fall in NSW as other states - notably Victoria and Western Australia - recorded strong bounce-backs from COVID-related disruptions in June.

CURRENCY NEWS: The Australian dollar changed hands at $0.7461, lower than levels around $0.75 seen yesterday.

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