Australia Market closes at all time high

Headline indices of the Australia share market closed at all time high on Wednesday, 24 July 2019, as investors risk sentiments underpinned by following gains on Wall Street overnight and on hopes the US and China will reached a trade deal. Every sector except mining rose on the ASX benchmark index, with technology, telcos, and financials the strongest sectors. Gold mining companies were among the weakest performers, after a sharp fall in the price of the precious metal. At closing bell, the benchmark S&P/ASX200 index inclined 52.05 points, or 0.77%, to 6,776.68, its record closing high, also reached on November 1, 2007. Meanwhile the broader All Ordinaries added 49.91 points, or 0.73%, to end the session at 6862.39, the highest level it ever touched.

Local market commenced trading with form footing, following gains on Wall Street overnight and on hopes the US and China will reached a trade deal after US Trade Representative Robert Lighthizer would travel to Shanghai next week for face-to-face trade meetings with Chinese officials. White House economic adviser Larry Kudlow told reporters on Tuesday the in-person talks to resolve the US-China trade deal were a good sign.

 

The US Trade Representative Robert Lighthizer and senior US officials are set to travel to China next Monday for the first high-level, face-to-face trade negotiations between the world's two biggest economies since talks broke down in May. Lighthizer and a small team will be in Shanghai through Wednesday, according to people familiar with the plans who asked not to be identified. The meeting will involve a broad discussion of the issues outstanding and isn't expected to yield major breakthroughs, a senior administration official said. President Donald Trump and Chinese counterpart Xi Jinping met at the Group of 20 summit in Japan last month and declared a tentative truce in their year-long trade war. The leaders directed their negotiators to resume trade talks. Since then Treasury Secretary Steven Mnuchin, Lighthizer and their Chinese counterparts have spoken by phone. On Monday, Trump and senior White House officials, including Mnuchin and Lighthizer, met with chief executives of US technology companies in a step toward easing a ban on sales to China's Huawei Technologies, which has been another point of tension in the relationship.

Shares of financial sector were a standout performer, with Westpac up 1.7% to A$28.39, National Australia Bank up 1.7% to A$28.33, and Commonwealth Bank up 1% to A$82.35.

Shares of materials declined, with Rio Tinto falling to a 6-week low of A$100.51 after brokerage house rating downgrade for the company, citing iron ore price has reached its peak. BHP Billiton declined 0.6% at A$41.33, and Fortescue Metals fell 0.6% to A$8.73. Regis Resources fell 11.7% to A$5.71 and Iluka Resources dropped 10% to A$9.99.

CURRENCY NEWS: The Australian dollar moved back under 70 US cents, buying at 69.85 US cents, from 70.21 US cents on Tuesday, after Westpac released a downbeat assessment of the economy. The nation's second-largest bank now predicts unemployment will keep rising and the Reserve Bank will cut interest rates twice more by February next year.

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