AUS
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Highlights
- Today, ASX 200 gained 14.20 points or 0.19% to close at 7,527.90 and set a new 50-day high.
- The Reserve Bank of Australia (RBA) held interest rates steady at a record low 0.1% and dropped hints of a further increase.
- Talks of more sanctions against Russia over its invasion of Ukraine, concerns about inflation and imminent monetary tightening by the US Federal Reserve are keeping investors cautious.
The Australian share market today was broadly influenced by the Reserve Bank of Australia’s (RBA) statement about monetary policy. The central bank has held interest rates steady at a record low 0.1%, where it has been since November 2020, despite a strong jobs market and growing inflation pressures. Besides, a further increase is expected. Investors will be particularly looking at additional evidence that will be reportedly available to the RBA Board on both inflation and the evolution of labour costs.
The Australian dollar, which is hovering around five month highs jumped 0.5% to US75.77¢ when the announcement came out. The ASX 200 declined by about 15 points but changed its course as the day progressed.
Coming to the local bourse’s performance today, the benchmark ASX 200 got as high as 7573.4 points during the day. Eventually, it gained 14.20 points or 0.19% to close at 7,527.90 and set a new 50-day high. Over the last five days, the index has gained 0.85% and is currently 1.37% off of its 52-week high. It will be worth seeing if we are getting close to where the market was in January, before it fell.
On the sectoral front, eight of 11 sectors ended higher. The technology sector was the best performer, gaining 3.1%, followed by energy, which edged 2.2% higher, propelled by a rise in the oil price overnight.
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Top gainers and losers
The best performer today was Mineral Resources (ASX:MIN), up over 5% after it agreed with its Joint Venture Partners to increase production from the Wodgina and Mt Marion spodumene mines, based in Western Australia. Mineral Resources was followed by Novonix Limited (ASX:NVX) and Polynovo Limited (ASX:PNV), both up by over 4%. Other stocks in the gainers list were James Hardie (ASX:JHX) and Xero Limited (ASX:XRO).
On the other side, in the red zone of the ASX 200, Liontown Resources (ASX:LTR) was the biggest laggard, its stock down over 6%. Other stocks in this zone were Lynas Rare Earths (ASX:LYC), Gold Road (ASX:GOR), Nufarm (ASX:NUF) and Netwealth Group (ASX:NWL).
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Asian and global market
Asian stock markets were mixed in a light trading day today as few major markets remained closed. Taiwan and China markets were closed for Qingming Festival. Hong Kong remained closed for National day.
The Japanese stock market was slightly lower with the Nikkei 225 staying just above the 27,700 level. New Zealand and Singapore traded up nearly 0.3% each, while South Korea and Malaysia slumped 0.1 and 0.2%, respectively. Indonesian market was relatively flat.
Overnight on Wall Street, stocks moved mostly higher. The Nasdaq surged 271.05 points, the S&P 500 advanced 36.78 points and the S&P 500 rose 103.61 points.
Globally, traders are closely eying developments in the ongoing conflict between Russia and Ukraine, which continues to impact energy prices. Besides, there are chances for new sanctions on Russia. Additionally, concerns about inflation and the imminent monetary tightening by the US Federal Reserve are keeping investors cautious.
