Australian shares rebound after Wall Street lift, RBA rate outlooks
Australia shares rose 0.2% to 8,994 midday Thursday, snapping a three-session slide. Gains were tempered as July trade surplus narrowed to AUD 1.9 billion and Q2 GDP boosted expectations for an RBA rate increase.
Australian shares edged up 12 points or 0.2% to 8,994 around midday Thursday, snapping a three-session slide after Wall Street rebounded from losses driven by rising Treasury yields and renewed U.S.—Iran tensions.
Bargain hunting emerged after local markets hit a four-week low, lifting most sectors, notably non-energy minerals, manufacturing, and industrials.
However, gains were capped by trade data showing the surplus narrowed to AUD 1.9 billion in July as exports fell faster than imports.
Meanwhile, stronger-than-expected Q2 GDP figures reinforced expectations that the Reserve Bank will raise rates at this month’s meeting.
The big four banks rose between 0.5% and 1.5%, while PLS Group gained 3.0%, Fortescue 2.7%, and Orica 2.2%.
In contrast, heavyweight BHP Group slipped 1.1%.