The share market has gained ground as higher commodity prices fuelled strong gains by mining and energy companies.
The benchmark S&P/ASX200 index rose 0.3 per cent, in line with gains made on Wall Street and major equity markets across Europe.
The Australian dollar recovered slightly from Tuesday’s fall, triggered by the Reserve Bank of Australia’s warning about the economic risks posed by rising household debt levels.
It was trading at 75.79 US cents at 1700 AEST, up from 75.68 US cents on Tuesday.
IG market strategist Evan Lucas said higher commodity and oil prices boosted the materials and energy sectors of the share market, which gained 2.2 and 1.5 per cent, respectively.
But time will tell if the gains can be sustained, as trade resumes on the Chinese market after a two day public holiday, Mr Lucas said.
BHP rose 3.5 per cent to $24.75, Rio Tinto gained three per cent to $61.72 and Fortescue Metals was 5.3 per cent stronger at $6.42.
The heavyweight financials index fell 0.2 per cent, with ANZ, National Australia Bank and Westpac losing ground as the US financial sector comes under pressure amid questions about President Donald Trump’s “fiscal agenda and what he can and can’t get through”, Mr Lucas said.
“We’ve been watching very closely the financial services space considering it makes up such a large part of our market, the US is a really good lead indicator for us and they’ve been waning over there and it drags on us here,” he said.
Investors are also looking ahead to the April 23 French election, as presidential candidate Marine Le Pen wants to remove the country from the European Union.
Should Ms Le Pen win, it would raise many questions about the future of French banks, and “would rock global markets”, given the huge task of untangling the sector from European lending, Mr Lucas said.
Insurance Australia Group shares slipped 0.3 per cent after it cut its annual margin guidance due to an expected $140 million in claims from Cyclone Debbie.
The consumer staples index also finished lower, hurt by falls in vitamins maker Blackmores and retail heavyweight Wesfarmers.
ON THE ASX:
* The benchmark S&P/ASX200 was up 19.6 points, or 0.33 per cent, at 5,876.2 points.
* The broader All Ordinaries index was up 20.1 points, or 0.34 per cent, at 5,915.9 points.
* The June SPI200 futures contract was up 15 points, or 0.26 per cent, at 5,859 points at 1630 AEST.
* National turnover was 2.6 billion securities traded worth $5.7 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 75.79 US cents, from 75.68 US cents on Tuesday
* 83.87 Japanese yen, from 83.60 yen
* 70.98 euro cents, from 71.01 euro cents
* 60.95 British pence, from 60.87 pence
* 108.59 New Zealand cents, from 108.40 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,255.74 per fine ounce, down $US1.56 from $US1,257.30 on Tuesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.698pct, down from 1.708pct
* CGS 4.25pct April 2026, 2.555pct, up from 2.549pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.360 (implying a yield of 2.640pct), steady from Tuesday
* March 2017 3-year bond futures contract at 98.120 (1.880pct), up from 98.110 (1.890pct).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
