Australia Stocks end edge higher

The Australian share market finished session higher on Tuesday, 23 June 2020, as investors took heart from rallies on Wall Street overnight on hopes of more stimulus measures to combat a coronavirus-led economic slump.

At closing bell, the benchmark S&P/ASX200 index rose 9.86 points, or 0.17%, to 5,954.41. The broader All Ordinaries added 11.31 points, or 0.19%, to 6,069.29.

Real estate had the biggest gains, up 1.2 per cent, followed by the consumer discretionary and industrial sectors. The consumer staples sector had the biggest decline, down 0.6 per cent.

Investors there were clinging to hopes for more stimulus after US House of Representatives Democrats last week unveiled a US$1.5 trillion infrastructure bill while reports also emerged of preparations by the Trump administration for an infrastructure stimulus plan. The virus remains prevalent, however, with a dozen states in the US reporting record increases in new cases.

ECONOMIC NEWS: Australia Private Sector Expands In June- Australia's private sector expanded in June owing to loosening of restrictions related to the coronavirus pandemic, survey results published by IHS Markit showed Tuesday. The Commonwealth Bank flash composite output index climbed to 52.6 in June from 28.1 in the previous month. A score above 50 indicates expansion. The increase was centered on the service sector, which saw a rise in activity for the first time in five months. Meanwhile, manufacturing production continued to fall, although at a much softer pace. New orders stabilized, ending a four-month sequence of decline, but companies continued to reduce employment as they generally operated below normal capacity.

CURRENCY NEWS: The Australian dollar rose amid broad US dollar weakness against a basket of currencies. The Australian dollar changed hands at $0.692 following an earlier low of $0.6857.

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