Market edges higher despite impasse in US
The benchmark S&P/ASX 200 Index closed up 3.6 points at 5153.0, and the broader All Ords rose 3.5 points to 5151.6.
IG market strategist Evan Lucas said gains by BHP Billiton and Westpac helped hold the market above water.
Upgrades from some US investment banks also boosted such iron ore miners as Fortescue and Atlas Iron.
"It's a relatively good day, considering how strong we saw the US markets off overnight," Mr Lucas said.
Gains in the materials, consumer staples and industrial sectors suggested that investors still saw fundamental value in stocks.
"It is a good sign for the market that once we are clear of this issue going on in Washington, things could actually be looking up," Mr Lucas said. He said there had been no change in the political rhetoric to suggest the government shutdown was about to end, or that the debt ceiling would be lifted soon.
In the resource sector, BHP Billiton gained 13¢ to $34.83, Rio Tinto eased 5¢ to $60.20, Fortescue Metals improved 9¢ to $4.78, and Atlas Iron jumped 8¢ to 97.5¢. Goldminer Newcrest rose 10¢ to $10.93 after announcing the departures of its chairman and chief executive, following this year's disastrous write-downs.
Among the banks, ANZ nudged up 1¢ to $30.45, National Australia advanced 7¢ to $34.26, Commonwealth Bank shed 8¢ to $71.02, and Westpac found 19¢ at $32.17.
Meanwhile, the bond market was slightly weaker in quiet trade as traders awaited US developments. CMC Markets chief market strategist Michael McCarthy said trading volumes had been low.
He said investors were becoming less concerned about the possibility of a US default.
"We're seeing more analysis of the cash flows for the US government and the flexibility to move those payments around," he said. "There has been a suggestion that they could get to early November without a technical default."
The December 10-year bond futures contract was trading at 95.955 (implying a yield of 4.045 per cent), down from 95.965 (4.035 per cent) on Tuesday.
The dollar was trading at US94.32¢ late on Wednesday, up from US94.18¢.
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The market rose as investors looked beyond the US budget impasse and potential debt default. Gains by major stocks such as BHP Billiton and Westpac, plus upgrades from some US investment banks that helped iron ore miners like Fortescue and Atlas Iron, supported the rally. Commentators also noted sector strength in materials, consumer staples and industrials, suggesting continued fundamental value in stocks.
The S&P/ASX 200 closed up 3.6 points at 5,153.0, while the broader All Ordinaries rose 3.5 points to 5,151.6.
BHP Billiton gained 13¢ to $34.83, Rio Tinto eased 5¢ to $60.20, Fortescue Metals improved 9¢ to $4.78, and Atlas Iron jumped 8¢ to 97.5¢. Goldminer Newcrest rose 10¢ to $10.93 after announcing the departures of its chairman and chief executive following this year’s write-downs.
Among the banks, ANZ nudged up 1¢ to $30.45, National Australia Bank advanced 7¢ to $34.26, Commonwealth Bank shed 8¢ to $71.02, and Westpac found 19¢ at $32.17.
IG strategist Evan Lucas said there had been no change in US political rhetoric to suggest an immediate end to the shutdown or a quick lift to the debt ceiling. CMC Markets’ Michael McCarthy said investors were becoming less concerned about the possibility of a US default, noting analysis of US government cash flows and flexibility that could push a technical default out to early November.
The bond market was slightly weaker in quiet trade as traders awaited US developments, with low trading volumes reported. The December 10‑year bond futures contract traded at 95.955 (implying a yield of 4.045%), down slightly from 95.965 (4.035%) on Tuesday.
Gains across those sectors suggest investors still see fundamental value in stocks despite political noise. As IG’s Evan Lucas noted, once the US budget and debt issues are clearer, market conditions could improve — an observation investors often use to gauge sector resilience and risk appetite.
The Australian dollar was trading at US94.32¢ late on Wednesday, up from US94.18¢ earlier in the session.
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