Australian shares lifted by gold and IT stocks as traders analyze US jobs data – April 08, 2024 at 02:51 am EDT

Australian shares end slightly higher on positive U.S. jobs data

On Monday, Australian shares closed slightly higher, driven by gains in information technology and gold stocks. This uptick was in line with U.S. peers, following strong jobs data that eased concerns of a recession in the world’s largest economy.

Tech sector rally mirrors U.S. counterparts

The S&P/ASX 200 index finished 0.2% higher at 7,789.100 after a 0.6% decline on Friday. Hebe Chen, a market analyst at IG Markets, noted that the Australian market started the week with a modest uptick, fueled by a tech sector rally of over 1%, mirroring the performance of Wall Street.

Investors focus on U.S. consumer price index data

Globally, investors are digesting data from the U.S. Labor Department showing an increase in hiring, raising the possibility of the Federal Reserve delaying rate cuts. The upcoming U.S. consumer price index data will provide cues on the Fed’s stance on monetary policy easing.

Resource-heavy bourse sees gains in bellwether miners

In the resource-heavy Australian market, bellwether miners saw a 0.5% increase, with mining giant Rio Tinto gaining 1%. IT stocks also performed well, rising 1.2%, with companies like Wisetech Global and Block Inc gaining.

Gold stocks climb on record high bullion prices

Gold stocks surged 2.7% as bullion hit a fresh record high. Financials inched up 0.1%, with the “Big Four” banks posting gains between 0.1% and 0.4%. However, the energy sector fell 1.2% due to a dip in oil prices caused by Israel’s actions in Gaza.

Beach Energy slumps on gas project cost estimates

Oil and gas explorer Beach Energy experienced a 15% drop after raising cost estimates for its Waitsia Stage 2 gas project in Western Australia. This decline weighed on the energy sector in the Australian market.

RBNZ cash rate decision expected later this week

In New Zealand, the benchmark S&P/NZX 50 index closed 0.3% lower. Market participants anticipate the Reserve Bank of New Zealand to keep interest rates unchanged in an upcoming meeting, according to a Reuters poll.

Additional Insight:

The positive U.S. jobs data and its impact on the Australian and New Zealand markets highlight the interconnectedness of global economies. Investors will continue to monitor central bank decisions and economic indicators to gauge the overall health of the financial markets. The performance of key sectors such as technology, mining, and energy provides valuable insights into market trends and sentiment.