July 13 (Reuters) - Australian shares rose more than 1% on Thursday, led by a rally in commodity stocks, after U.S. inflation data showed consumer prices subsided in June, raising bets the Federal Reserve may have fewer rate hikes in store ahead.
The S&P/ASX 200 index (xjo) advanced 1.3% to 7,230.8 points by 0036 GMT, hitting their highest level since July 6.
The U.S. Consumer Price Index (CPI) gained just 0.2% in June, data showed on Wednesday, underscoring expectations the Federal Reserve may let interest rates stand after one more 25-basis-point hike at its July policy meeting.
Meanwhile, Reserve Bank of Australia Governor Philip Lowe said on Wednesday he is confident higher interest rates are working to cool inflation but it is possible they will have to do further hikes.
Major sub-indexes in the benchmark ASX 200 posted strong gains.
Gold stocks .AXGD led gains surging 5.2%, their biggest intraday jump since March 20, tracking an uptick in gold prices.
Shares of Northern Star Resources (NST) and Newcrest Mining (NCM) climbed 4.8% and 4.4%, respectively.
Mining stocks .AXMM rose 2.0% as iron ore prices extended gains on hopes of more stimulus for China's property sector. Shares hit its best day since June 14.
Sector-majors BHP Ltd (BHP) and Rio Tinto (RIO) jumped 1.6% and 2.2%, respectively.
Financial stocks .AXFJ advanced 1.1%, hitting their highest level since July 6. The so called "big four" banks gained between 0.7% and 1.0%.
Energy stocks .AXEJ jumped 1.1%, hitting their highest level since June 22, as oil prices strengthened.
New Zealand's benchmark S&P/NZX 50 index (nz50) advanced 0.4% to 11,958.36 points.
The country's central bank kept cash rate steady at 5.5% on Wednesday, hitting pause as expected and flagging rates would be on hold for some time, with most economists still expecting rate cuts to come in 2024.
- Forums
- ASX - By Stock
- XGD
- News: XGD Commodity stocks push Australian stocks higher after US inflation data
News: XGD Commodity stocks push Australian stocks higher after US inflation data
Featured News
Add XGD (ASX) to my watchlist
|
|||||
Last
8,509.8 |
Change
53.800(0.64%) |
Mkt cap ! n/a |
Open | High | Low |
8,456.0 | 8,589.4 | 8,446.2 |
Featured News
XGD (ASX) Chart |
The Watchlist
HAR
HARANGA RESOURCES LIMITED.
Peter Batten, MD
Peter Batten
MD
Previous Video
Next Video
SPONSORED BY The Market Online