The Australian share market turned around a weak start to the day as bargain hunters bought stocks beaten up in Monday and Tuesday's plunge.
The benchmark S&P/ASX200 index rose 0.2 per cent to 5,890.7 points, after falling 0.3 per cent in early trade.
CMC Markets chief market strategist Michael McCarthy said it was the sectors of the market hit hardest at the start of the week that drove Thursday's gains.
"We've seen some evidence of bargain hunting in the market," Mr McCarthy said.
"The buying that we're seeing is in those areas that have been beaten up recently or are considered to be in value territory, so telcos and banks are leading the charge at the moment."
"At the other end of the spectrum, commodity-exposed sectors and stocks are under pressure, and energy and materials are the worst performers."
Mr McCarthy said investors were focusing on earnings reports from local companies, but remain mindful that the disruption that occurred on Monday and Tuesday could happen again.
The prospects of rising inflation and the potential for an accelerated program of interest rate hikes from the US Federal Reserve were the trigger for sharp falls on Wall Street, which flowed over to markets around the world.
On Thursday, National Australia Bank was the best performer among the banks, gaining 2.3 per cent after meeting expectations with cash earnings of $1.65 billion in the first quarter of its fiscal year.
ANZ gained 0.8 per cent, Westpac added 0.3 per cent, while Commonwealth Bank dropped 0.4 per cent.
Wealth manager AMP climbed 3.6 per cent after more than doubling its underlying annual profit.
In the energy sector, Woodside Petroleum dropped 2.1 per cent and Santos and Oil Search each surrendered 1.6 per cent after oil prices slipped to a one-month low due to a rise in US inventories.
Origin Energy shed two per cent after flagging a $533 million hit to its half year results from impairment charges.
Rio Tinto dropped one per cent despite its strong annual profit growth and record dividend, BHP Billiton shed 1.4 per cent and Fortescue Metals was 0.8 per cent weaker.
Tabcorp dropped 6.8 per cent after its half-year underlying profit and wagering division earnings missed market expectations.
The Australian dollar is weaker against the US dollar, which is outperforming all major currencies, due in part to easing commodity prices.
ON THE ASX:
* The benchmark S&P/ASX200 was up 13.9 points, or 0.24 per cent, at 5, 890.7 points.
* The broader All Ordinaries index was up 13.7 points, or 0.23 per cent, at 5,995.2 points.
* The SPI200 futures contract was up 20 points, or 0.35 per cent, at 5,810 points.
* National turnover was 2.7 billion securities traded worth $6.2 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 78.25 US cents, from 78.77 US cents on Wednesday
* 85.81 Japanese yen, from 85.99 yen
* 63.76 euro cents, from 63.59 euro cents
* 56.27 British pence, from 56.41 pence
* 108.72 NZ cents, from 107.73 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,311.66 per fine ounce, from $US1,329.61 per fine ounce on Wednesday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 4.50 per cent April 2020, 2.0116pct, from 1.9796pct
* CGS 4.75pct April 2027, 2.8392pct, from 2.7952pct
Sydney Futures Exchange prices:
* March 2018 10-year bond futures contract at 97.115 (implying a yield of 2.885pct), from 97.16 (implying a yield of 2.84pct) on Wednesday
* March 2018 3-year bond futures contract at 97.82 (2.18pct), from 97.85 (2.15pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)
U.S. stocks tumbled anew on Thursday in another trading session with big swings, as investors remained on edge after several days of volatile trading.
Major indexes fell about 2 percent in late afternoon trading.
The benchmark S&P 500 was set for a second day of declines, following sharp swings in recent sessions including its biggest drop in more than six years that pulled equities away from record highs.
“The dust hasn’t settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do,” said Jonathan Corpina, senior managing partner for Meridian Equity Partners in New York.
”I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out.”
The retreat in equities had been long awaited by investors as the market climbed steadily to record high after record high with few bumps.
The sharp selloff in recent days was kicked off by concerns over rising inflation and bond yields, sparked by Friday’s January U.S. jobs report, with investors pointing to additional pressure from the violent unwind of trades linked to bets on volatility staying low.
The 10-year U.S. Treasury note yield US10YT=RR rose as high as 2.884 percent, nearing Monday’s four-year peak of 2.885 percent, after the Bank of England said interest rates probably need to rise sooner than previously expected.
“What we’re seeing today is continued concerns around interest rates going higher, around valuations in the stock market,” said Chris Zaccarelli, chief investment officer with Independent Advisor Alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average .DJI fell 542.48 points, or 2.18 percent, to 24,350.87, the S&P 500 .SPX lost 50.06 points, or 1.87 percent, to 2,631.6 and the Nasdaq Composite .IXICdropped 146.56 points, or 2.08 percent, to 6,905.43.
Financials .SPSY and consumer discretionary .SPLRCD stocks were among the biggest decliners, while utilities .SPLRCU were the lone major S&P sector in positive territory.
Investors are weighing whether the sharp swings this week are the start of a deeper correction or just a temporary bump in the nine-year bull market.
The percentage of individual investors expecting a decline in stock prices is at a three-month high, according to the latest AAII Sentiment Survey.
The market’s main gauge of volatility, the Cboe Volatility Index .VIX, rose 4.20 to 31.93 on Thursday, nearly three times the average level of the past year.
The number of Americans filing for unemployment benefits unexpectedly fell last week, dropping to its lowest level in nearly 45 years as the labor market tightened further, bolstering expectations of faster wage growth this year.
In earnings news, Twitter (TWTR.N) rose 14.0 percent after the social media company delivered its first quarterly profit and an unexpected return to revenue growth.
Source: Netwealth Morning Business Roundup
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Got the date right today. Checked it twice. It would be nice to know exactly how the market played out though in advance
Happy trading, play nicely and make informed decisions.
