Australian shares have closed higher as surging iron ore and coking coal prices helped lift energy and mining sectors.
The benchmark S&P/ASX200 stock index was up 18.2 points, or 0.3 per cent, at 1630 AEDT on Wednesday, as gains among the mining and energy companies offset weakness elsewhere across the bourse.
AxiTrader chief market strategist Greg McKenna, said local investors across the broader market lacked an "Australian specific" story to follow.
"That's why there's a bit of a handbrake on us - basic materials have gone through the roof but the rest of the market has struggled," Mr McKenna said.
Rising iron ore and coking coal prices drove gains for local mining and energy producers.
BHP Billiton, Rio Tinto and Fortescue Metals were up 1.7 per cent, 2.2 per cent and 3.1 per cent respectively, while Whitehaven Coal gained 1.8 per cent.
Alongside Whitehaven in the energy sector, Woodside Petroleum ended 1.1 per cent higher at $33.55, and Origin Energy rose 1.4 per cent to $9.57.
Among the lenders, National Australia Bank gave up its morning gains to end the day the worst performing of the big four banks with a 0.3 per cent fall to $29.48.
ANZ was the only gainer, with a single cent rise to $28.59.
Yowie Group lost a third of its value to close at a near five-year low of 14 cents following the chocolate maker's announcement of a sharp pullback in full-year sales guidance.
Paint and adhesives supplier DuluxGroup lost 0.8 per cent to $7.60, after winding back its China-facing operations as its DGL Camel International agreed to offload most of its Hong Kong and China coatings portfolio.
Mr McKenna said the Australian dollar has edged lower against a greenback lingering around three-month lows.
"The atmospherics are positive but in the short-term the pullback in cooper has been a handbrake on the Australian dollar," Mr McKenna said.
The local currency was trading at 78.22 US cents at 1700 AEDT on Wednesday, down from 78.39 on Tuesday.
ON THE ASX:
* The benchmark S&P/ASX200 index was up 9.1 points, or 0.15 per cent, at 6,070.4 points
* The broader All Ordinaries index was up 9.3 points, or 0.15 per cent, at 6,175.3
* The SPI200 futures contract was up nine points, or 0.15 per cent, at 6,031 points
* National turnover was 4.6 billion securities traded worth $4 billion
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 78.22 US cents, from 78.39 on Tuesday
* 87.82 Japanese yen, from 88.34 yen
* 64.87 euro cents, from 65.20 euro cents
* 57.49 British pence, from 57.98 pence
* 110.21 NZ cents, from 110.08 cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,314.60 per fine ounce, from $US1,3007.43 per fine ounce on Tuesday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 4.50 per cent April 2020, 2.0466pct, from 2.0544pct
* CGS 4.75pct April 2027, 2.6624pct, from 2.6335pct
Sydney Futures Exchange prices:
* March 2018 10-year bond futures contract at 97.285 (implying a yield of 2.715pct), from 97.31 (implying a yield of 2.69pct) on Tuesday
* March 2018 3-year bond futures contract at 97.825 (2.175pct), from 97.82 (2.18pct)
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)
The benchmark S&P 500 index surged past the 2,700-mark for the first time on Wednesday and other major indexes hit record intraday highs as technology stocks climbed amid indications of robust economic growth in the U.S. and overseas.
The technology sector was boosted by a rise in shares of Oracle, IBM and chipmakers. The index .SPLRCT - the best-performing S&P 500 sector in 2017 with a 37-percent jump - was up 1.08 percent.
“Tech sector got beaten up right toward the end of the year and is seeing a rebound. It stands to benefit the least from the tax plan, but large caps that have the largest overseas holdings will benefit from ability to repatriate money,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
A report showed U.S. factory activity increased more than expected in December, in a further sign of strong economic momentum at the end of 2017. Meanwhile, manufacturing surveys pointed to a strong start for the European economy.The manufacturing data came ahead of the scheduled release of the Federal Reserve’s minutes of its December policy meeting.
Investors are likely to scan the release for hints on rate tightening action in the coming months and the impact of the U.S. tax overhaul on the economy and inflation.
The odds of an interest rate hike in March jumped to 61.9 percent from 56.3 percent after the data, according to CME Group’s Fedwatch tool.
At 12:40 a.m. ET (1740 GMT), the Dow Jones Industrial Average .DJI was up 58.72 points, or 0.24 percent, at 24,882.73 and the S&P 500 .SPX was up 13.77 points, or 0.51 percent, at 2,709.58. The Nasdaq Composite .IXIC was up 50.44 points, or 0.72 percent, at 7,057.33.
The indexes were also supported by gains in energy and healthcare.
Oil prices rose nearly 2 percent to their highest in 2-1/2 years, with buying spurred by a sixth day of unrest in Iran and strong economic data from the United States and Germany. [O/R]
Intel (INTC.O) fell 4.4 percent following a report that its processor chips had a fundamental design flaw.
Rival chipmaker Advanced Micro Devices (AMD.O) climbed 8.5 percent. Nvidia (NVDA.O) gained 6.2 percent and Micron (MU.O) rose 3 percent.
MoneyGram International (MGI.O) fell about 10 percent after Alibaba-owned Ant Financial’s plan to acquire the U.S. money transfer company in a $1.2 billion deal collapsed due to national security concerns.
Advancing issues outnumbered decliners on the NYSE by 1,547 to 1,309. On the Nasdaq, 1,586 issues rose and 1,305 fell.
Source: Netwealth Morning Business Roundup
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