PERTH: The Australian sharemarket has rallied to end the week where it began after a string of three losses from Monday to Wednesday, as market volatility subsides and the prospect of further loose monetary policy buoys sentiment.
Investors are eyeing cheaper credit for longer, taking bets that the US Federal Reserve and the Reserve Bank of Australia will keep interest rates low, supporting equity markets.
At the 4.15pm (AEDT) official market close, the benchmark S & P/ASX200 index was up 38.2 points, or 0.73 per cent, to 5268.2, while the broader All Ordinaries rose 38 points, or 0.72 per cent, to 5303.6.
Today’s close leaves the market largely flat over the course of the week, losing just 11 points.
Rivkin global investment director Oliver Gordon said that unless the local market has a sharp, impulsive move lower, the ASX200 could remain in a bullish mood in the short term.
“This is consistent with the falling level of volatility across equity markets in general and as the US dollar ceases to trend higher, less nerves about further Chinese currency intervention response will be exposed — a good thing for avoiding a repeat of the August theme,” Mr Gordon said.
