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Australia Market rises on the rate cut expectations

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The Australian share market closed modestly higher on Friday, 20 September 2019, amid rising expectations of another interest-rate cut after the Australian Bureau of Statistics (ABS) data showed that nation's jobless rate climbed to 5.3% in August, its highest level in a year. At closing bell, the benchmark S&P/ASX200 index added 13.33 points, or 0.2%, to 6,730.80, while the broader All Ordinaries rose 13.83 points, or 0.2%, to 6,839.

Australian employment rose in August but the jobless rate worsened to a one-year high of 5.3% as more people looked for work, a sign of spare capacity in the labour market that reinforced expectations of more central bank stimulus.

Investors digested news that the U. S. and Chinese deputy trade negotiators have resumed face-to-face talks for the first time in almost two months on Thursday.

Financials were higher, with Australia's "big four" banks were higher. ANZ Banking, National Australia Bank, Commonwealth Bank and Westpac were up in a range of 0.3% to 0.5%.

The major miners were mostly lower.

Rio Tinto and Fortescue Metals were down in a range of 0.4% to 1%. The world's largest miner BHP Group added 0.5%

Money manager IOOF (IFL) improved by 8% after winning a Federal Court case against APRA, which was attempting to have five executives disqualified from the company. IFL was in a trading halt this morning ahead of the announcement.

Premier Investments (PMV) jumped by 15.3% after eported a nearly 28% increase in full-year profit on higher revenues and increased its final dividend. It declared a 12.1% lift in its final dividend to 37c.

CURRENCY NEWS: The Australian dollar was up against greenback on Friday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6795, compared to $0.6781 on Thursday.

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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, September 20 2019. 13:25 IST