Aussie shares hit eight-day high as oil prices dip

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Aussie shares hit eight-day high as oil prices dip

Aussie shares hit eight-day high as oil prices dip

The local share market has gained ground as geopolitical tensions seemed to ease and oil prices retreated from a six-week high.

At noon AEDT on Wednesday, the benchmark S&P/ASX200 index was up 49.3 points, or 0.6 per cent, to 8,226.2, its highest level since October 1.

The broader All Ordinaries had gained 50.1 points, or 0.59 per cent, to 8,493.8.

Oil prices overnight dipped down to a six-day low of $US77 a barrel amid a build-up of inventories. Brent crude had hit a six-week high of $US81 a barrel on Monday amid fears of all-out war in the Middle East.

While fighting continues in Lebanon the conflict has not yet spun completely out of control.

Israel also appeared to be biding its time to retaliate against Iran for last week’s missile barrage.

Across the ditch, the Reserve Bank of New Zealand on Wednesday cut interest rates by half a percentage point, as expected, taking Kiwi rates from 5.25 per cent to 4.75 per cent.

Investors were looking ahead to US earnings season and there was a good backdrop for markets to move higher despite the stormy clouds, Moomoo market strategist Jessica Amir said.

Nine of the ASX’s 11 sectors were higher at midday, with energy and materials lower after China unveiled stimulus measures on Tuesday that disappointed investors hoping for more.

Telecommunications was the biggest gainer, rising 1.6 per cent as Telstra gained 1.7 per cent and REA Group added 2.7 per cent as the realestate.com.au owner held its annual general meeting.

REA chief executive Owen Wilson told shareholders that last month had been the company’s best September for Australian listings in nine years, and properties were still selling despite the increased supply, showing robust demand.

In the heavyweight financial sector, all of the big banks were higher with CBA rising 0.9 per cent, NAB up 0.8 per cent, ANZ advancing 0.7 per cent and Westpac climbing 0.5 per cent.

Insurance companies IAG, Suncorp and QBE were posting even stronger gains, with IAG up 2.5 per cent and the other two both expanding 1.3 per cent.

Buy now, pay later company Zip was the best performer in the ASX200 at midday, advancing 5.5 per cent to a two-and-a-half-year high of $2.87.

The materials sector was down one per cent however with the iron ore giants all losing ground.

Rio Tinto was down 2.1 per cent, BHP had fallen 1.1 per cent and Fortescue had dipped 0.8 per cent.

The Australian dollar was buying 67.72 US cents, from 67.25 US cents at Tuesday’s ASX close.

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