Australia Market rebounds on bargain hunting

The Australian share market finished session sharp higher on Wednesday, 03 November 2021, as investors chased for bargain hunting after RBA Governor Philip Lowe statement that he has no plans to hike rates next year, with heavyweight financials and miners driving the rebound.

At closing bell, the benchmark S&P/ASX200 advanced 68.41 points, or 0.93%, to 7,392.73. The broader All Ordinaries index gained 66.49 points, or 0.87%, to 7,713.05.

The Reserve Bank of Australia (RBA) on Tuesday announced its decision to keep its cash rate target unchanged at a record low but discontinued its target of 10 basis points for the April 2024 Australian Government Bond, opening the door for an earlier interest rate hike. However, RBA Governor Philip Lowe insisted after market hours on Tuesday that the decision did not reflect that the central bank would raise rates before 2024.

Financials led gains on the benchmark, with Commonwealth Bank of Australia being notable gainers after the country's largest lender said it would offer retail clients crypto services.

Shares of materials and resources were up despite weaker iron ore and copper prices, with BHP Group and Rio Tinto up 1.1% and 1.2%, respectively. Energy stocks gained, with Whitehaven Coal being the top gainer with a jump of 3.8%.

CURRENCY NEWS: The Australian dollar changed hands at $0.7447 after yesterday's drop from above $0.752.

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