Best day in a year as Aussie shares surge on Iran truce
Australia’s stock market is trading at its highest level since early March after the United States and Iran reached a two-week ceasefire, easing rising oil prices and boosting investor confidence.
The S&P/ASX200 gained 233 points on Wednesday, up 2.55 per cent to 8,951.8 points, while the broader All Ordinals index rose 244.5 points, or 2.74 per cent, to 9,165.7 points.
Oil prices fell on news of a temporary ceasefire, which is tied to key agreements including reopening the Strait of Hormuz to western oil tankers, after an effective blockade of the Strait of Hormuz by Iran plunged the world into an energy crisis.
It was the stock market’s best day in nearly a year, returning $83 billion to the All Ordinaries’ combined market capitalization of $3.1 trillion after falling more than 10 percent to its lowest point since the start of the conflict.
The Australian dollar is buying 70.71 US cents at 69.19 US cents due to improvement in global growth and commodity prices.
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