Australia Market rebounds 0.4%

The Australian share market closed higher in volatile trade on Thursday, 09 May 2019, thanks to strong gains from telcos, banks and energy stocks. Market gains were however limited amid cautious ahead of high level trade talks in Washington between the US and China tomorrow. At closing bell, the benchmark S&P/ASX200 index advanced 26.2 points, or 0.4 per cent, to 6295.3 while the broader All Ordinaries closed 25.5 points, or 0.4 per cent, higher at 6377.3.

Uncertainty over US-China trade led stocks up and down in a rocky trading session. Stocks turned green after White House Press Secretary Sarah Sanders told reporters that China had informed the administration that the country wants to make a trade deal with the United States.

The US President Donald Trump tweeted on Wednesday that China's Vice Premier Liu He was coming to the United States to "make a deal". Liu's scheduled trip to the United States had been a glimmer of hope for investors this week, suggesting that trade negotiations could still advance to avoid a fully fledged trade war between the world's two largest economies.

This week's global selloff in stocks came after the United States made new threats to impose additional tariffs on Chinese imports. That led investors to believe that a market-positive outcome from the trade talks between the US and China was further off than previously believed and might not lead to a deal at all. On Sunday, President Donald Trump tweeted that existing tariffs on Chinese goods could be upped to 25% from 10% currently. Treasury secretary Steven Mnuchin and US trade representative Robert Lighthizer confirmed that higher tariffs would be possible by Friday in comments late Monday.

Graincorp declined 4.3 per cent to $7.63 after posting a A$58.9m loss over the six months to March due to severe drought on the east coast. The grain handler has decided to not pay investors an interim dividend for the first time since 2009.

Adelaide Brighton declined 10.3 per cent to $3.76 after the building products maker warned profits will be 10-15 per cent lower in 2019 than last year. The cut to guidance was blamed on a slowing property market, increased competition and higher costs.

Orica shares closed trade 5.6 per cent higher at A$19.70 after the chemicals and explosives maker posted solid half year results and reiterated its outlook.

Qantas shares climbed 2.2 per cent to A$5.56 after posting a 2.3 per cent lift in revenue to A$4.4bn for the three months to March despite the timing of Easter which was later than usual this year. The current quarter (Apr-Jun) will receive a boost from Easter travel.

CURRENCY: The Australian dollar declined against the U.S. dollar on Wednesday. The Australian dollar was quoted at 70.23 US cents, from 70.35 US cents on Tuesday.m

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