The Australian share market has risen on the back of encouraging US economic data.
Investors set aside US Federal Reserve Chair Janet Yellen’s talk of an earlier-than-expected interest rate hike and instead focused on positive US economic data.
IG market analyst Evan Lucas said the Australian market edged higher following “kneejerk responses” to news from the US Federal Reserve on Thursday.
“The low macro news environment is moderating any real prominent moves,” Mr Lucas said.
“What is becoming clear as markets approach the end of the first quarter is there have been three key themes that have impacted the full spectrum of instruments over this period – the US winter, Chinese growth and geo-political issues in Eurasia.”
He said overnight influences had been positive for the local market, following soft diplomacy from the EU and Russia appearing to step back from further escalations.
In the US the Philadelphia Federal Reserve manufacturing index rebounded in March, suggesting that the impact of recent severe winter weather on the economy may be temporary.
Locally, the big miners and the big four banks all posted strong gains on Friday.
Westpac rose 36 cents to $33.60, Commonwealth Bank was 69 cents higher at $75.66, ANZ gained 13 cents to $32.25, and National Australia Bank lifted 26 cents to $34.67.
BHP Billiton rose 38 cents to $35.58, Rio Tinto added 57 cents to $61.37 and Fortescue Metals was eight cents stronger at $4.98.
Meanwhile, internet company iiNet was up seven cents at $7.67 after co-founder and chief executive Michael Malone announced his resignation.
Shares in grocery wholesaler Metcash dropped 30 cents, or 9.5 per cent, to $2.85 after the company downgraded its earnings and announced it would cut dividend payments to fund a $480 million capital expenditure program.
On Wall Street overnight, stocks bounced back from the previous day’s Federal Reserve-sparked losses with investors encouraged by favourable US economic data.
The Dow Jones Industrial Average lifted 108.88 points, or 0.67 per cent, to 16,331.05 points.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was up 44.1 points, or 0.83 per cent, at 5,338.1.
* The broader All Ordinaries index rose 41.3 points, or 0.78 per cent, at 5,354.
* The June share price index futures contract was 34 points higher at 5,331, with 27,106 contracts traded.
* The price of gold in Sydney was $US1334.18 per fine ounce, down $US2.73 on Thursday’s closing price of $US1,331.45.
* National turnover was 2.4 billion securities worth $5.3 billion.
