The Australian sharemarket edged higher today as a rally in mining shares helped to offset broader losses, after local investors shrugged off a Wall Street rebound and signs of possible easing in trade tensions between the US and China.
The S&P/ASX 200 closed 16.6 points, or 0.2 per cent, higher at 8899.40, as a rally in gold, silver, rare earths and uranium stocks blunted losses by the big four banks and retailers.
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The mixed trading performance came despite a rally on Wall Street overnight, as US President Donald Trump said things with China “will all be fine” just days after he sent markets reeling by threatening to step up his trade war. The Aussie dollar was trading at US64.77¢ shortly after 4pm today.
Retailers struggled across the board after the latest ANZ-Roy Morgan survey showed consumer confidence dropped for a second straight week after the Reserve Bank left rates unchanged this month. It’s now at its lowest level in more than a year. Only 10 per cent of Australians expect good times for the economy over the next five years.
Kmart and Bunnings owner Wesfarmers (down 1.2 per cent) and electronics chain JB Hi-Fi (down 1.5 per cent) paced losses in the consumer discretionary sector, while supermarket giants Woolworths and Coles both lost 1.6 per cent.
In contrast, mining heavyweights closed in the black, with iron ore giants BHP and Rio Tinto up 2.2 per cent and 1.8 per cent, respectively. Rio, the world’s second-biggest miner, said its third-quarter copper output jumped 10 per cent from the year before as it seeks to keep ramping up production of the metal, which is key to the energy transition.
Read the full market wrap here.
With AP, AAP and Bloomberg