Australian shares ended slightly higher for a sixth straight session on Thursday, with financials and gold stocks leading gains, as investor sentiment improved on bets of the U.S. Federal Reserve standing pat on interest rates.
The S&P/ASX 200 index closed 0.04% higher at 7,091.0.
Uncertainty around the path of the U.S. economy, including difficulties estimating state of financial markets and potential oil price shocks pushed Fed officials to take a cautious stance at the last monetary policy meeting, according to minutes of the the central bank’s Sept 19-20 session released on Wednesday.
The U.S. consumer price index data for September, expected to show a moderation in inflation, is due later in the day.
Australian shares edge higher on mining boost, Fed in focus
“Although suggesting that rates will stay higher for longer, markets are now only pricing in a 30% chance of another rate hike from the Federal Open Market Committee (FOMC),” said Damian Rooney, Director of Equity Sales at Argonaut.
Damian said he sees the RBA staying on hold for the time being, as U.S. banks report earnings starting Friday.
Domestic lenders climbed 0.9%% to their highest since Sept. 19. The “Big Four” banks logged gains between 0.7% and 1%.
Gold stocks rose 1.2%, tracking bullion price highs ahead of US CPI data.
Further, miners advanced 0.7% to a three-week high, tracking tight iron ore prices.
BHP Group, Rio Tinto and Fortescue Metals Group rose between 0.1% and 1%.
Healthcare stocks dropped 4.5% to their lowest since the onset of the pandemic, with biopharmaceutical firm CSL losing 6.3%, tracking slumps of U.S. dialysis services providers.
New Zealand’s benchmark index slipped 0.1% to 11,292.58 points.
Air New Zealand’s shares fell as much as 2.1% to a five-month low as the flag carrier cautioned of lower earnings for the first half of fiscal 2024.
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