SYDNEY: Australian stocks finished the day stronger for a second straight session, buoyed by a rise in the iron ore price overnight and a positive reaction to the US Federal Reserve’s latest remarks on interest rates.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 was up 45.3 points, or 0.81 per cent, at 5669.5, while the broader All Ordinaries index rose 43.5 points, or 0.78 per cent, to 5653.1.
IG chief market strategist Chris Weston said the ASX200 had built on the previous day’s rally, as it finished above yesterday’s intra-day high of 5651.
Energy stocks had joined the miners in driving the market higher, up 2.25 per cent, with the sector having “broken the June downtrend” on the back of oil seemingly hitting a price floor, Mr Weston said.
And Mr Weston said the US Federal Reserve seemed to be managing market expectations almost perfectly.
“If the object of its communication exercise is to ease the market into a normalisation process without causing a stir in capital markets, then you would give their performance a nine out of 10.”
CMC Markets sales trader Betty Lam said the trade in the largest capped stocks had erased “most of the losses the local bourse faced over the course of selling last week”.
Mining stocks finished the day up 1.21 per cent with BHP Billiton and Rio Tinto both lifting 2.36 per cent, to $26.50 and $53.00 respectively, while Fortescue Metals rose 0.8 per cent to $1.895.
