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Australia Market extends gains to third day

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The Australian share market surged to 11-years high on Friday, 17 May 2019, as investors risk sentiments underpinned by tracking positive lead from Wall Street overnight. Meanwhile, buying momentum aided by expectation that the (RBA) will cut the cash rate in June after weaker than expected local jobs data. At closing bell, the benchmark S&P/ASX200 index rose 37.47 points, or 0.6%, at 6,365.30 points, while the broader added 42.72 points, or 0.67%, at 6,460.21.

The local market extended gains for third day in row as investor sentiment was lifted by robust economic data released from the overnight and as concerns over the US-trade war receded slightly.

Excessive worries over the US-trade war that sent stocks sharply lower earlier this week are receding, with the assumption that any actual punitive measures would come in late June or later.

Meanwhile, risk sentiments bolstered after fresh data showed wage growth stagnating last quarter, fuelling market expectations that the (RBA) would cut interest rates as soon as June. The RBA pinned its hopes on a robust labour market to lend support for a cooling Markets took signs of labour market weakness as an argument for rate cuts. The April jobs report showed that unemployment rate crept to 5.2% from 5%.

surged, on the back of rising and rose as much as 2.8% and 2.1%, respectively. put on 1.2%.

Shares of materials and resources gained, led by major iron ore miners as the price of the bulk headed toward $100 a tonne, unphased by the ongoing trade war. rose 4.5% to A$38.46, advanced 6.4% to A$101.35 and climbed 18.7% to A$8.95.

Financial stocks were mixed, with up 0.09% at A$26.685, up 0.49% to A$73.69, while NAB was down 0.21% to A$24.15 and was down 0.23% to A$25.79.

NEWS: The Australian declined against the U. S. on Friday, after weak full-time employment data on Thursday cemented views the would be forced to cut rates soon to stimulate the The Aussie slipped to 68.87 US cents on Friday, the lowest since early January when a crash briefly sent the Aussie to 67.43 US cents.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 13:57 IST