Market closes higher after Wall Street stocks surge
The share market Closed higher for the fourth day in a row after stocks on Wall Street hit an all-time high and commodity prices rose.
Investors were also soothed by the selection of a new prime minister in the United Kingdom.
Theresa May takes on the role after prime minister David Cameron resigned in the wake of Britain’s shock vote to leave the European Union.
Stocks jumped at the open, buoyed by the strong session on Wall Street, with most sectors rising.
They lost steam through the day though and by the close the ASX 200 index was a third of 1 per cent higher at 5,353, while the All Ordinaries Index added 16 points to finish on 5,433.
Resources stocks bounced on higher prices for key commodities including iron ore.
BHP Billiton spin-off company South32 jumped 5.4 per cent to $1.95 and iron ore miner Fortescue Metals added 2.5 per cent to $4.17.
Consumer stocks were also in favour — Australia’s biggest car retailer Automotive Holdings Group jumped by 3.5 per cent to $4.13 and media company Nine Entertainment added 3.3 per cent to $1.10.
The big four banks all rose again after yesterday’s bumper gains — ANZ led the way, up 1.2 per cent to $24.20.
NAB’s latest monthly business survey showed conditions for doing business have jumped to a near eight-year high, despite the Brexit vote.
NAB’s latest business survey found confidence among firms and conditions for doing business both strengthened in June.
NAB said the survey highlighted the strength in the domestic economy, especially in the services sector.
The Australian dollar pushed to a two-week high against the greenback and at 5.30pm AEST was buying about 76 US cents, 68.6 euro cents, 78.6 Japanese yen and 58.1 British pence.
Oil prices were higher after dropping overnight with Brent crude up nearly 0.5 per cent to about $US46.40 a barrel, while spot gold was slightly lower at about $US1,354 an ounce.