Australia Stocks gain as robust U.S., China data

The Australian share market finished higher on last session of the month, quarter, and financial year, Tuesday, 30 June 2020, as the investors inherited a positive lead from Wall Street's rebound overnight with upbeat economic data from China and the United States helping to ease concerns over the health of the global economy from the coronavirus pandemic. But the market saw its topside capped as investors refrained from active buying amid concerns about a deeper-than-feared recession and the number of confirmed COVID-19 cases surpassing 10 million worldwide.

At closing bell, the benchmark S&P/ASX200 index added 82.85 points, or 1.42%, to 5,897.88. The broader All Ordinaries rose 85.70 points, or 1.45%, to 6,001.35. The S&P/ASX200 index added 2.5% in June and 16.2% for the June quarter, but fell 11.3% for the 2020 financial year.

 

The US Pending Home Sales Index, an advance look at home sales based on signed purchase and sale agreements, fell 5.1 percent in May compared to the same month last year, according to data from the National Association of Realtors (NAR). When compared to April of 2020, the news was much better. Pending sales increased by 44.3 percent last month after two consecutive months of decline, NAR reported.

China manufacturing sector continued to expand in June, and at a slightly faster rate, the latest survey from the National Bureau of Statistics showed on Tuesday with a manufacturing PMI score of 50.9, up from 50.6 in May. It also moves further above the boom-or-bust line of 50 that separates expansion from contraction. The bureau also noted that its non-manufacturing index came in with a score of 54.4, up from 53.6 in the previous month.

But the market saw its topside capped as investors refrained from active buying amid concerns about a deeper-than-feared recession and the number of confirmed COVID-19 cases surpassing 10 million worldwide. A total of 71 new coronavirus cases have been confirmed nationwide today: 64 in Victoria, five in New South Wales and two in Western Australia.

Business software company WiseTech Global dropped 2.2% after its chief executive Richard White sold 2.25 million of his shares (at $18.40 each) to earn himself a $41.3 million payday.

Shares in Scentre Group lifted by 0.9%, after the company announced that 92% of retail stores across its Westfield shopping malls were open.

CURRENCY NEWS: The Australian dollar off the intraday high of around 68.8 US cents, as Victoria announced that suburbs considered coronavirus hotspots would have stay-at-home orders reimposed. The Australian dollar had lost 0.2% against the greenback to around 68.5 US cents late afternoon.

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