Australia Market gains 0.75%

Headline indices of the Australian financial market closed higher on Wednesday, 06 March 2019, on expectation of policy support from the government after weaker than expected economic figures. Market gains were, however, limited as investors awaited details on progress in the U.S.-China trade negotiations. All ASX sectors were higher, with shares in with materials, industrials, and financials subsectors being notable gainers. At closing bell, the benchmark S&P/ASX200 index rose 46.32 points, or 0.75%, at 6,245.62 points, while the broader All Ordinaries added 45.41 points, or 0.72%, at 6,326.76.

The Australian Bureau of Statistics announced on Wednesday that GDP had grown by only grew 0.2% for the last quarter of 2018 and just by 2.3% for the year.

 

U.S. Secretary of State Mike Pompeo said in a media interview that U.S. President Donald Trump will reject a trade deal with China that is not perfect, but the United States would still keep working on an agreement.

Department store Myers was up 10.98%, to 45.5 cents, after reporting that it had cut its debt by more than a third, to A$95.4 million, and posted a A$38.4 million first-half profit.

Bubs Australia (BUB) surged 18% on a joint venture agreement signed with a Chinese infant nutritionals firm, Beingmate, to promote and distribute Bubs products across 30,000 mother and baby stores in China. Competitor, Bellamy's Australia (BAL) was also improving by 8%.

ECONOMIC NEWS: The Australian Bureau of Statistics said Australia's gross domestic product or GDP was up a seasonally adjusted 0.2% on quarter in the fourth quarter of 2018. That was shy of expectations for an increase of 0.5% following the 0.3% gain in the three months prior.

CURRENCY: The Australian dollar was down against the U.S. dollar on Wednesday on bets the Royal Bank of Australia will likely cut interest rates this year. The Australian dollar was quoted at 70.33 US cents, down from 70.78 US cents on Tuesday.

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