Australia Market extends gain to seventh day

The Australian share market finished edged higher on Wednesday, 10 June 2020, registering seventh sessions of gains in row, on signs of rapid recovery from the coronavirus lockdown. However, market gains capped as weaker than expected Chinese inflation data for May on caution ahead of the end of a two-day policy meeting of the U.S. Federal Reserve later in the day.

At closing bell, the benchmark S&P/ASX200 index edged up 3.45 points, or 0.06%, to 6,148.40. The broader All Ordinaries added 6.39 points, or 0.1%, to 6,269.30.

China's producer prices fell by the sharpest rate in more than four years, underscoring pressure on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand. The producer price index (PPI) in May fell 3.7% from a year earlier, the National Bureau of Statistics (NBS) said in a statement on Wednesday, the sharpest decline since March 2016. On a monthly basis, however, producer prices showed some signs of steadying. May producer prices fell 0.4% from the previous month, easing from April's 1.3% fall. The consumer price index rose 2.4% from a year earlier - the weakest reading since March 2019 - compared with a 3.3% increase in April, as food prices continued to ease.

 

Investors maintained a cautious stance ahead of a U.S. Federal Reserve policy decision later today. Investors await US Fed policy statement on the state of the economy and clues on future measures.

CURRENCY NEWS: The Australian dollar changed hands at $0.6981 after touching an earlier low of $0.693.

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