THE sharemarket closed firmer after a positive lead from Wall Street on encouraging comments by US politicians about avoiding the "fiscal cliff".
The benchmark S&P/ASX 200 Index was up 30.4 points, or 0.68 per cent, at 4477.7, while the broader All Ordinaries Index rose 27.5 points, or 0.62 per cent, to 4490.1.
RBS Morgans Ipswich manager Tony Russell said the market closed at its highest point of the day after gains by the big miners and banks.
Wall Street posted good gains, spurred by encouraging remarks from US President Barack Obama and House Speaker John Boehner on averting looming tax rises and spending cuts that could push the economy into recession, the so-called "fiscal cliff".
The Dow Jones Industrial Average finished 0.83 per cent higher at 12,985.11, snapping two days of losses. Locally, the big miners started the day mixed but all closed strongly. BHP Billiton closed 21? higher at $34.21, despite angry shareholders at its annual meeting accusing the company of hoarding $5 billion in surplus cash when it should be paying a special dividend.
Rio Tinto gained 48? to $57.18 after announcing plans to cut spending and make savings worth billions of dollars in the next few years. Iron ore miner Fortescue Metals added 6? to $3.86.
The four big banks also gained strength. ANZ finished 27? higher at $24.09, National Australia Bank gained 7? to $23.95, Westpac jumped 20? to $25.23 and Commonwealth Bank surged 46? to $59.44.
Australian Bureau of Statistics data released on Thursday showed Australia's mining investment boom might be peaking earlier than expected as resource companies rein in capital spending plans.
National turnover was 1.6 billion securities worth $4.11 billion.
The price of gold in Sydney closed at $US1719.62 an ounce, down $US19.86.
The dollar was trading higher at US104.67?, up from US104.48?.
Meanwhile, bond futures prices were little moved, despite a weaker capital investment outlook.
UBS interest rate strategist Matthew Johnson said bond futures edged higher following the release of capex figures that showed a downwards revision to spending plans for 2012-13. Prices then dropped back but he said bond futures should be well supported overnight.
The December 10-year bond futures contract was at 96.86 (implying a yield of 3.14 per cent), down slightly from 96.865 (3.135 per cent). The three-year contract was trading at 97.33 (2.67 per cent), unchanged.
Frequently Asked Questions about this Article…
Why did the ASX 200 and Australian sharemarket close higher today?
The market closed firmer after a positive lead from Wall Street following encouraging comments from US politicians about avoiding the "fiscal cliff." The S&P/ASX 200 gained 30.4 points (0.68%) to 4,477.7, and the All Ordinaries rose 27.5 points (0.62%) to 4,490.1.
How did the big miners perform and which mining companies led gains?
Big miners closed strongly. BHP Billiton finished at $34.21 despite shareholder complaints about holding surplus cash. Rio Tinto rose to $57.18 after announcing plans to cut spending and deliver billions in savings, and Fortescue Metals was at $3.86.
What happened to the major bank stocks today and which banks gained?
The four major banks gained ground: ANZ closed at $24.09, National Australia Bank at $23.95, Westpac at $25.23 and Commonwealth Bank at $59.44, contributing to the market's stronger close.
What did the ABS data say about mining investment and why does it matter for investors?
Australian Bureau of Statistics data indicated the mining investment boom might be peaking as resource companies rein in capital spending plans. For everyday investors, this signals a potential shift in capex trends that can affect mining stocks and related sectors.
How did bond futures and implied yields move during the trading session?
Bond futures were little moved overall. UBS strategist Matthew Johnson said futures edged higher after capex figures then eased but should be supported overnight. The December 10-year bond futures contract was at 96.86 (implying a 3.14% yield) and the three-year contract was at 97.33 (about 2.67%).
How did global markets, especially Wall Street, influence local stock performance?
Wall Street posted solid gains—The Dow Jones Industrial Average finished 0.83% higher at 12,985.11—after positive remarks from President Obama and House Speaker John Boehner about averting tax rises and deep spending cuts. That upbeat lead helped lift local stocks.
What were the moves in gold prices and the Australian dollar today?
Gold in Sydney closed at US$1,719.62 an ounce, down US$19.86. The Australian dollar traded higher at US104.67 cents, up from US104.48 cents earlier in the session.
What was market turnover today and what does the turnover figure show?
National turnover was 1.6 billion securities worth $4.11 billion. Turnover is a snapshot of trading activity on the market that investors often watch to gauge liquidity and investor interest during a session.
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