SYDNEY: The Australian sharemarket has won back early losses to finish marginally in the black, as a recovery in China stocks and a GDP-inspired boost to rate cut hopes buoyed investors.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index had gained 5.1 points, or 0.1 per cent, to 5101.5, while the broader All Ordinaries lost 2.3 points, or 0.04 per cent, to 5119.4.
Earlier, the market had sunk more than 1 per cent into the red as China stocks opened more than 4 per cent down. But the communist giant’s markets had recovered to be largely flat at lunchtime and a GDP print of 0.2 per cent for the three months to June, against forecasts of 0.4 per cent, lifted hopes for further interest rate cuts by Reserve Bank of Australia.
“With GDP and employment now moving outside the RBA’s projections, we could see the possibility of rate cuts re-emerging,” IG market analyst Angus Nicholson said.
