The Australian stock market is rising on Wednesday, recouping some of its recent losses, with the benchmark S&P/ASX 200 rising again above the 6,800 level driven by a huge rally in the materials stocks. With the vaccination drive gathering pace, are optimistic about reopening of the global economy. The Australian economy also expanded for the second straight quarter, advancing 3.1 percent.
The benchmark S&P/ASX 200 Index is gaining 44.10 points or 0.65 percent to 6,806.4, after reaching a high of 6,811.50 earlier. The broader All Ordinaries Index is higher by 44.10 points or 0.63 percent to 7,054.00.Australian market erased early gains to end lower on Tuesday.
In the tech space, Appen and Afterpay are falling more than 2 percent, while WiseTech Global is gaining 0.6 percent.
Gold miners are higher after gold prices snapped a five-day losing streak. Evolution Mining and Newcrest Mining are gaining over 2 percent, while Northern Star Resources is adding almost 4 percent.
Among the major miners, BHP Group is rising nearly 3 percent, Fortescue Metals is higher by more 3 percent and Rio Tinto is advancing more than 1 percent.
Rio Tinto Chairman Simon Thompson is stepping down and will not seek re-election following investor pressure on mishandling of investigations after destruction of two ancient Aboriginal rock shelters.
Oil stocks are higher, with Oil Search rising nearly 1 percent, Santos adding nearly 2 percent, while Woodside Petroleum is edging up 0.2 percent.
Among the big four banks, ANZ Banking, Westpac and National Australia Bank are advancing more than 1 percent, while Commonwealth Bank is edging up 0.5 percent.
In economic news, the Australian Bureau of Statistics said on Wednesday that Australia's gross domestic product expanded a seasonally adjusted 3.1 percent on quarter in the fourth quarter of 2020. That beat expectations for a gain of 2.5 percent the upwardly revised 3.4 percent gain in the previous three months (originally 3.3 percent). On a yearly basis, GDP was down 1.1 percent - again exceeding expectations for a decline of 1.8 percent after sinking 3.8 percent in the three months prior.
The latest survey from the Australian Industry Group showed that the construction sector in Australia continued to expand in February, albeit at a slightly slower pace, with a Performance of Construction Index score of 57.4. That's down from 57.6 in January, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. All four sectors in the index recovered strongly in February.
The services sector in Australia continued to expand in February, albeit at a slightly slower pace, the latest survey from Markit Economics showed, with a services PMI score of 53.4. That's lower than 55.6 in January and preliminary estimate of 54.1, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that its composite index fell to 53.7 in February from 55.9 in January and compared to a preliminary estimate of 54.4.
On Wall Street, stocks moved mostly lower over the course of the trading day on Tuesday, partly offsetting the rally seen in the previous session. The major averages all moved to the downside, with the tech-heavy Nasdaq showing a particularly steep drop.
The major averages came under pressure going into the close, ending the day just off their lows of the session. The Dow fell 143.99 points or 0.5 percent to 31,391.52, the Nasdaq tumbled 230.04 points or 1.7 percent to 13,358.79 and the S&P 500 slid 31.53 points or 0.8 percent to 3,870.29.
Meanwhile, the major European markets moved to the upside over the course of the session. While the German DAX Index edged up by 0.2 percent, the French CAC 40 Index rose by 0.3 percent and the U.K.'s FTSE 100 Index climbed by 0.4 percent.
Crude oil prices drifted lower Tuesday ahead of the upcoming OPEC meeting that may see the group hike production. West Texas Intermediate Crude oil futures for April ended down $0.89 or 1.5 percent at $59.75 a barrel.
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