Australian Market Rises

(RTTNews) - The Australian stock market is rising on Monday despite the mixed cues from Wall Street Friday. Optimism about a U.S. stimulus package before the presidential elections in November and a coronavirus vaccine before the end of this year lifted stocks.

The benchmark S&P/ASX 200 Index is advancing 62.30 points or 1.01 percent to 6,239.10, off a high of 6,240.20 earlier. The broader All Ordinaries Index is adding 57.60 points or 0.90 percent to 6,442.60. Australian stocks closed lower on Friday.

Among the major miners, Fortescue Metals is rising more than 2 percent, while BHP Group and Rio Tinto are advancing more than 1 percent each.

In the banking space, Commonwealth Bank, ANZ Banking, National Australia Bank and Westpac are higher in a range of 1.0 percent to 1.2 percent.

Oil stocks are also higher even as crude oil prices closed modestly lower on Friday. Oil Search is advancing more than 1 percent, Santos is rising 0.6 percent and Woodside Petroleum is adding 0.3 percent.

Meanwhile, gold miners are mixed after gold prices edged lower Friday. Newcrest Mining is adding 0.7 percent, while Evolution Mining is down 0.2 percent.

Australia's financial crime watchdog AUSTRAC will investigate possible money laundering and other breaches at gaming and hotel group Crown Resorts' operations in Melbourne. Shares of Crown Resorts are tumbling almost 8 percent.

In economic news, the Reserve Bank of Australia will release the minutes from the bank's monetary policy meeting on October 6. At the meeting, the central bank retained its benchmark interest rate at the record low of 0.25 percent and also decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points.

On Wall Street, stocks closed mixed on Friday after moving sharply higher early in the session. The late-day pullback may have reflected lingering uncertainty about a new stimulus bill, with the slump also being attributed to the expiration of equity options. The rally seen in early trading came as much better than expected retail sales data partly offset recent concerns the economic recovery may be stalling.

While the Nasdaq fell 42.32 points or 0.4 percent to 11,671.56, the Dow rose 112.11 points or 0.4 percent to 28,606.31 and the S&P 500 inched up 0.47 points or less than a tenth of a percent to 3,483.81.

The major European markets showed strong moves to the upside on Friday. While the French CAC 40 Index surged up by 2 percent, the German DAX Index and the U.K.'s FTSE 100 Index jumped by 1.6 percent and 1.5 percent, respectively.

Crude oil prices rebounded from the session's lows, but still ended marginally lower on Friday as worries about the demand outlook amid the continued surge in coronavirus cases weighed on the commodity. WTI crude for November delivery edged down $0.08 or about 0.2 percent to $40.88 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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