Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade. The recent motif Australian investors may have picked up on is an 11am kicker to the local market. Today’s 11am booster sent the local bourse up 25 points.
BHP switched back into favour after a weeklong sell-campaign. After spending the first half of the week at 5 year lows, the major miner regained support this morning despite softer iron ore prices and continued oil instability. BHP opened strongly, catapulting upwards over 3%. Support eased off by lunchtime, with the miner trading back to low $28 levels.
Following David Murray’s financial review, the big banks have been trading sluggish at best. Banks were also happy recipients of the morning cheer, with the financials trading in the green for remainder of the session. Both ANZ and NAB both held their AGM today.
In afternoon trading, the early morning rally flailed off. Lunchtime saw 50 points taken off the bourse as the market eased its foot off the buying-pedal. Banks and miners saw support retreat, as afternoon volumes thinned out. Energy stocks maintained their momentum, trading over 3.5% in the green. Reaction to US unemployment claims and Philly Fed Manufacturing Index may set the scene for Australian stocks come Friday morning.For further comment from CMC Markets please call 02 8221 2135.