Aussie shares were poised for a day of gains and local stocks not disappoint. The largest capped stocks found support in early trade and lead the market up 0.9% across the trading session, erasing most of the losses the local bourse faced over the course of selling last week.
Iron ore continues to buck the recent commodity trend and strengthened for a consecutive third session, firming up almost 5% overnight. The encouraging climb instilled fresh faith in local investors who scooped up material and energy stocks, which have been under pressure of late.
Monthly building approval data was released ahead of lunch. Returning a month on month decline of 8.2%, a steep drop compared to an expected pullback of just 0.8%. The Aussie dollar sold off immediately following the news and currently trades in early 0.73 ranges.
In afternoon trading, volumes remain traditionally skinny for the week. Investors remain cautious after last week’s 150 point drop. The market continues to trade in green as the financials also add to the session’s gains, taking the local index just 40 points shy of last week’s recent high.
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