The good news came after the US Federal Reserve held interest rate levels as they are, helping to ensure investors that they are beginning to get a grip on inflation. The news from America helped the S & P/ASX200 climb by 0.9 percent, reaching 6,899.7 points. All Ordinaries also saw rises, adding 1 percent, rising to 7,095. Currency movements saw the Australian Dollar end trading at 64.25 against the USD.
However, despite the positive movements, it should be noted that US Federal Reserve Chair, Jerome Powell, has suggested rates could still rise at some point in the near future. Mr. Powell said that the Federal Reserve needed to be asking whether they should be hiking rates again and added that the reserve wasn’t confident that inflation was fully under control yet. As such the Australian markets might be affected in December if rates are hiked in the US, which Powell clearly thinks is a strong possibility.
Out of the 11 sectors across Australia’s benchmark, nine ended the day with gains. Tech stocks were among the biggest winners, seeing a 3.2 percent increase overall. Other strong performers include real estate stocks, which rose by 2.4 percent overall, and telecommunication stocks, which saw overall increases of 2 percent.
Rises in the tech sector were helped partly by the 3.5 percent increase that Xero saw, while Wisetech Global also saw significant gains of 3.4 percent. Multinational software company Altium also had a good day’s trading, ending the day 3.5 percent higher than when the day’s trading began.
However, while the ASX had a good day overall, some sectors didn’t do so well. Losers include the utilities sector which saw falls of 3.8 percent, while the energy sector fell by 2.9 percent.
Such losses in the utilities sector were partly down to Origin falling by 6.6 percent. And in the energy sector, Santos’ share value fell by 2.9 percent. This fall is mostly attributed to the Federal Court’s decision against the company’s plans to build a $5.8 billion gas pipeline in the Timor Sea off Australia’s North Eastern Coast.
The best performer overall was Sayona Mining, a company that produces lithium. These rises come after news that they’ve identified high-grade lithium in a project they invested in in Quebec. The news helped the morning company’s stock rise by 8.3 percent to 7.8 cents.
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