Aust stocks rise at noon

Local bourse pares early gains following fresh five-year high after Larry Summers leaves race for US Fed chairman position.

The Australian stock market has pared early gains after reaching a fresh, five-year intra-day high, on the back of Larry Summers' decision to withdraw from the race for the United States Federal Reserve's chairman seat, meaning the body is less likely to wind back economic stimulus quickly.

At 1205 AEST, the benchmark S&P/ASX200 index rose 0.63% to 5,252.4 points, while the broader All Ordinaries index added 0.61% to 5,246.3 points.

Soon after the open, the benchmark rose to 5,266 points, a level not seen since before the collapse of Lehman Brothers in 2008, while the All Ordinaries index hit 5,259 points, also a five-year high.

IG analyst Evan Lucas said Mr Summers' hawkish views posed a threat to the tapering timeline, with some observers expecting him to remove stimulus quickly, in contrast to Janet Yellen, now the likely appointee.

"Her position in the Federal Open Markets Committee is one of general dovishness and this news will delight emerging markets and risk markets," Mr Lucas said.

No major economic or equities news is expected.

In Australia, the market on Friday closed lower after a seven-day run of gains that had pushed share prices to five-year highs.

The benchmark S&P/ASX200 index was down 22.9 points, or 0.44%, at 5,219.6.

The broader All Ordinaries index was down 23.5 points, or 0.45%, at 5,214.7.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles