Markets in Australia Extend Gains Following Us Inflation Data

Must Read

The Australian stock market finished the session higher on Friday, 13 January 2023, extending gains for the third consecutive session and notching fresh five-week highs.

The gain was driven by positive US inflation data released earlier in the week and solid domestic economic reports, which bolstered investor sentiment and boosted demand for riskier assets. Investors were relieved by the latest US inflation report that showed smaller-than-expected increases in producer prices in December – providing support for a further easing of monetary policy by the Federal Reserve.

“Central banks are keeping conditions tight as economies slow down, and that will flow into the reporting season,” said Mathan Somasundaram, chief executive officer at Deep Data Analytics.

Overall, the Australian stock market ended higher for the third consecutive session and notched fresh five-week highs after positive US inflation data released earlier in the week. The S&P/ASX200 index closed 47.71 points or 0.66% up at 7,328.10, while the All Ordinaries index gained 50.24 points or 0.67%, to end at 7,540.10 on Friday, 13 January 2023.

Overall, 9 out of 11 sectors ended higher along with S&P/ASX 200 Index, with the Energy sector leading the gains with 1.55%, followed by consumer discretionary (1.43%), financials (1.08%), and industrials (0.91%).

The latest US inflation report further bolstered the positive sentiment. It showed smaller-than-expected increases in producer prices in December – supporting a further easing monetary policy by the Federal Reserve. Investors worldwide then received it well, particularly in Australia, which is highly exposed to the US economy’s performance given its close ties through trade and investments over the years.

The bottom-performing stocks in the S&P/ASX200 index were IMUGENE and LAKE RESOURCES, down 5.88% and 4.62%, respectively. Despite the overall positive sentiment on the market, these two stocks failed to rally with the rest as investors remain wary of their long-term prospects.

Overall, it was an upbeat finish to a week full of positive economic news, with investors remaining optimistic about a recovery in 2021, despite recent spikes in coronavirus cases across several countries globally, including Australia’s largest trading partner China.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img