Australian Market Advances

(RTTNews) - The Australian stock market is advancing on Tuesday in choppy trading following the positive cues from Wall Street amid renewed optimism the U.S. and China will sign the first phase of trade deal by the middle of November. Hopes of upbeat corporate earnings results also boosted sentiment.

The benchmark S&P/ASX 200 Index is adding 17.80 points or 0.27 percent to 6,670.30, after touching a high of 6,674.10 earlier. The broader All Ordinaries Index is up 18.50 points or 0.27 percent to 6,776.20. Australian stocks closed roughly flat on Monday.

The major miners are higher. BHP Billiton is adding 0.7 percent, Fortescue Metals is rising almost 1 percent, and Rio Tinto is advancing more than 1 percent.

In the banking space, ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac are up in a range of 0.1 percent to 0.5 percent.

Oil stocks are also mostly higher, even as crude oil prices declined almost 1 percent overnight. Santos is higher by more than 1 percent and Woodside Petroleum is rising 0.3 percent.

Oil Search is down 0.2 percent after the Papua New Guinea-focused oil and gas explorer reported a 24 percent fall in revenue for the quarter ended September 30 and also cut its 2019 production outlook after damage to a mooring system.

Gold miners Newcrest Mining and Evolution Mining are declining more than 2 percent each after gold prices closed lower overnight.

Super Retail Group said its like-for-like sales rose 3.2 percent so far this financial year, but added that higher level of promotional activity adversely impacted its margins. The company's shares are losing almost 5 percent.

In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local currency was quoted at $0.6866, up from $0.6859 on Monday.

On Wall Street, stocks closed higher on Monday amid renewed optimism about the completion of phase one of a U.S.-China trade deal following comments from President Donald Trump and Chinese Vice Premier Liu He. The strong corporate results reported last week also made traders hopeful as earnings season gets into full swing in the coming days.

While the Dow rose 57.44 points or 0.2 percent to 26,827.64, the Nasdaq advanced 73.44 points or 0.9 percent to 8,162.99 and the S&P 500 climbed 20.52 points or 0.7 percent to 3,006.72.

The major European markets also moved to the upside on Monday. While the German DAX Index advanced by 0.9 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both edged up by 0.2 percent.

Crude oil futures drifted lower on Monday as worries about global economic slowdown and possible drop in near term energy demand weighed on the commodity. WTI crude for November ended down $0.47 or about 0.9 percent at $53.31 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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