ASX shakes off retail woes to post gains
The sharemarket recouped early losses on Thursday, as gains in resource stocks offset a terrible session for retailers.
Jens is the markets and breaking news editor, based in Sydney.
The sharemarket recouped early losses on Thursday, as gains in resource stocks offset a terrible session for retailers.
The Australian dollar took a hit after a surprise cut to China's credit ratings, but local shares have steadied following initial wobbles.
The reflation trade that fuelled last year's rally still has life in it, the world's largest asset manager says.
Shares rise, led by miners and energy stocks, taking leads from Wall Street as well as strong metal prices.
Commonwealth Bank, Australia's biggest bank, has seen third-quarter cash profits rise 4.3 per cent as the credit quality of its lending business "remained sound".
Talk of a new tax on the big banks and an underwhelming CBA trading update triggered a vicious sell-off in the big four lenders.
A likely improvement in the budget outlook should keep the rating agencies at bay, despite more spending for infrastructure.
The iron ore price plunged to its lowest since October but a late rebound in futures raised hopes the savage sell-off may have ended, for now.
A hefty slide in commodity prices as well as an abrupt end to the banking rally dashed hopes the benchmark index might scale the elusive 6000-point mark anytime soon.
The local sharemarket fell for a third straight session after a plunge in Chinese iron ore futures drove miners lower.
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