Australia Market rises on strong inflation data

The Australian share market finished session higher on Wednesday, 29 April 2020, as risk sentiment improved on strong domestic inflation data and on optimism about phased easing of coronavirus-driven lockdowns around the world. At closing bell, the benchmark S&P/ASX200 index advanced 80.33 points, or 1.51%, to 5,393.43. The broader All Ordinaries was up by 82.59 points, or 1.53%, to 5,463.81.

Investor confidence has been lifted as major countries and several US states reopen for business and central banks seem poised to inject more stimulus to offset the economic hit from the pandemic.

Banks and energy stocks contributed most to the broader market moves. The big four banks all rallied by a minimum of 4.2%. National Bank (NAB) was the standout with a 6.3% lift. ANZ Bank (ANZ), which is announcing its half-year earnings results tomorrow also rose 6.1%. Energy companies such as Origin Energy, Oil Search, Woodside Petroleum and Santos surged 5-7% as oil prices rebounded in Asian trade on hopes that a glut in global crude markets may be easing.

Gaming companies also saw some of the biggest moves among the top 200 stocks. Crown Resorts soared almost 11% after U.S. private equity firm Blackstone bought a 9.99% stake in the casino operator. The gains flowed onto Star Group (SGR) which climbed 10% while Tabcorp (TAH) also closed 7% higher.

Gold miners Newcrest and Northern Star Resources dropped 1-2% after safe-haven gold prices extended losses for a third straight session overnight.

ECONOMIC NEWS: Consumer prices in Australia rose 0.3% sequentially in the first quarter of 2020, a government report showed. That was down from 0.7% in the three months prior. On a yearly basis, inflation climbed 2.2%, up from 1.8% in Q4.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.69 after an earlier high of 99.885. The Australian dollar changed hands at $0.6533 following a rise from levels below $0.648 yesterday.

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