Australian shares rebounded on Tuesday, reflecting a rally on Wall Street as investors cautiously re-entered the market following last week’s sell-off. At 11:30am, the S&P/ASX 200 is 0.86 per cent higher at 8,057.10, driven by gains in banks and mining companies due to higher commodity prices. All 11 sectors rose, reversing Monday’s 0.3 per cent decline. Polynovo, Emerald Resources, and De Grey were the top gainers, while Life360 was the biggest decliner, falling 3.7 per cent. Major banks, including Commonwealth Bank and Macquarie, hit all-time highs, with UBS recommending banks over miners for stable valuations. Mining stocks also benefitted, with BHP up 0.7 per cent and Rio Tinto rising 1 per cent as iron ore prices surged above $US90 a barrel on expectations of fresh stimulus from China. Gold prices remained strong at $US2505.25, driving demand for gold miners like West African Resources, which gained 2.1 per cent.
The SPI futures are pointing to a rise of 61 points.
Best and worst performers
All sectors are in the black. The best-performing sector is Financials, up 1.42 per cent. The sector with the fewest gains is Industrials, up 0.18 per cent.
The best-performing large cap is Lynas Rare Earths (ASX:LYC), trading 2.84 per cent higher at $7.24. It is followed by shares in Meridian Energy (ASX:MEZ) and Netwealth Group (ASX:NWL).
The worst-performing large cap is Mercury NZ (ASX:MCY), trading 2.33 per cent lower at $5.88. It is followed by shares in Pilbara Minerals (ASX:PLS) and Cochlear (ASX:COH).
Commodities and the dollar
Gold is trading at US$2533.90 an ounce.
Iron ore is 0.3 per cent lower at US$91.45 a tonne.
Iron ore futures are pointing to a 2.22 per cent rise.
One Australian dollar is buying 66.53 US cents.