Australian shares end higher on US rate cut prospects

Elevra Lithium

16/02/2024 06:27

* 
      Lithium miners among top gainers on the benchmark
    

        * 
      Insurers IAG and QBE mark losses on profit miss
    

        * 
      New Zealand's inflation appropriate, says RBNZ governor
    

  
 (Updates to close)
    By Sherin Sunny
       Feb 16 (Reuters) - Australian shares advanced on Friday,
helped by gains in heavyweight financial and commodity stocks,
after weaker-than expected U.S. retail sales data boosted
prospects of a June rate cut by the Federal Reserve. 
    The S&P/ASX 200 index  .AXJO  closed 0.7% higher at 7,658.3
points, its highest close since Feb. 8. The benchmark gained
only 0.2% for the week. 
    U.S. retail sales dropped 0.8% in January, leaving investors
less stressed about the hotter than expected inflation data from
Tuesday, with markets now pricing in a Fed rate cut in June.
 FEDWATCH 
    "The softer U.S. retail sales print has investors feeling
better about the interest rate outlook, and equity markets have
risen as a consequence," Tim Waterer, Chief Market Analyst at
KCM Trade, said.
    In Sydney, mining stocks closed 1.6% higher on strong
underlying commodity prices, marking their best day since
mid-December 2023.  MET/L 
    However, the sub-index clocked losses for a second
consecutive week. 
    Heavy-weight miners BHP Group  BHP.AX , Rio Tinto  RIO.AX ,
and Fortescue  FMG.AX  gained between 1% and 1.2%. 
    Financial stocks  .AXFJ  closed 0.6% higher, with "Big Four"
banks gaining between 0.7% and 1.9%.
    Gold stocks  .AXGD  and energy stocks  .AXEJ  gained 2% and
1%, respectively, at close. 
    Lithium miners emerged as top gainers on the benchmark as
Liontown Resources  LTR , Sayona Mining  SYA.AX , Core Lithium
 CXO.AX  gained between 11.9% and 7.8%. 
    Australia classified nickel as "critical mineral", as its
prime minister prepared wider policy support for the green
energy industry. 
    In corporate news, Insurance Australia Group  IAG.AX  fell
4.3% while QBE Insurance Group  QBE.AX  fell 1.7% after their
results missed analyst estimates. 
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  closed the
session 0.7% higher at 11,724.48.
    The Reserve Bank of New Zealand (RBNZ) governor said the
central bank's current 2% mid-point inflation target remained
appropriate, as it struck a "right balance between the costs and
benefits of inflation". 


 (Reporting by Sherin Sunny in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Sherin.Sunny@thomsonreuters.com))
 
((For more information on DIARIES & DATA:
 U.S. earnings diary   RESF/US   
 Wall Street Week Ahead    .N/O 
 Global Economy Week Ahead  DATA/ 
................................................................
For latest top breaking news across all markets           NEWS1 ))