Wall Street extends winning streak, ASX set to rise
The Australian stock market opened higher on Thursday morning, continuing this week’s winning streak after US stocks rose for a fourth consecutive day thanks to solid gains from technology companies.
The S&P/ASX 200 rose 37 points, or 0.4 per cent, to 8643.50 by 11:03 AEDT, led by technology shares and gold miners. These gains come after the stock market gained 0.8 percent on Wednesday despite a report last month that showed inflation was higher than expected, further reducing the chances of a rate cut in the coming months. The Australian dollar was trading at 65.25¢.
Wall Street’s bright week continued.Credit: access point
As gold prices rose on growing expectations that the Federal Reserve would pursue further monetary easing, gold producers supported the mining industry; This has made the precious metal more attractive to investors for assets that are likely to pay lower returns. Gold generally benefits when rates are low because it doesn’t pay interest, so rate cuts won’t reduce returns.
Northern Star shares were up 2.7 percent, Evolution Mining was up 2.1 percent and Newmont was up 3 percent. Gold has consolidated above the US$4,000 per ounce threshold after retreating from a peak of over US$4,380 per ounce last month. The metal is up more than 55 percent this year, on track for its best annual performance since 1979.
Technology stocks also traded higher following gains from their U.S. peers. WiseTech Global, the country’s largest technology stock, increased by 3.5 percent. Fellow software maker Xero gained 1.9 percent, data center operator NextDC gained 1.2 percent and family member tracking app Life 360 gained 2.4 percent.
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The big four banks have moved ahead, shrugging off a move by financial regulator APRA to impose property lending restrictions on them. From February 1, the new limits will mean that no more than 20 per cent of banks’ new mortgage loans will be available to customers borrowing six times their income or more. Restrictions will apply to both residential investors and homeowners. CBA, the country’s biggest lender, was up 0.9 per cent, Westpac was up 0.2 per cent, National Australia Bank was up 0.5 per cent and ANZ was up 0.2 per cent.
Suncorp shares fell 2.4 per cent after the insurer said recent devastating winds and large hailstorms in South East Queensland and Northern NSW would cost it about $350 million, having received more than 10,000 claims.
Shares in larger rival QBE tumbled 3.7 per cent after the insurance giant announced it would buy back $450 million of shares from the market to boost investor returns and gross written premiums rose 6 per cent in the first nine months of the financial year. Looking at 2026, it was stated that “next year looks constructive in terms of further growth and the continuation of strong returns.”
