Australia’s sharemarket briefly passed a psychological milestone on Tuesday as traders reacted favourably to potential Middle East peace negotiations.
The benchmark ASX 200 added 44.80 points or 0.50 per cent to 8970.80, while the broader All Ordinaries closed 51.70 points higher or up 0.57 per cent to 9165.10 higher.
The Australian dollar slipped 0.08 per cent to buy 70.93 US cents.
On a strong day of trading six of the 11 sectors finished in the green led by technology and mining shares.
WiseTech Global shares ascended 3.77 per cent to $38.56, accounting software provider Xero climbed 3.92 per cent to $73.18 and Next DC closed up 4.30 per cent to $13.10.
BHP shares rallied 3.22 per cent to $56.10 on reports of China easing some iron ore cargo restrictions on the miner, while fellow producers Rio Tinto added 1.29 per cent to $174.29 and Fortescue Metals climbed 1.58 per cent to $20.60.
Also driving the ASX higher were healthcare stocks with CSL traded up 0.58 per cent to $138.08, Sigma Healthcare jumped 1.50 per cent to $2.71 and Cochlear lifted 1.60 per cent to $175.06.
Helping to lift markets was Brent Crude oil futures which fell 1.1 per cent back below $US100 a barrel ($A141).
At the time of writing it was trading at $US98.30 (A$138) a barrel.
IG market analyst Tony Sycamore said Australia’s sharemarket briefly jumped above the psychological 9000-point level thanks to a strong lead in from Wall Street.
“The early push followed a solid lead from Wall Street overnight, where investors focused on fresh signs that Middle East peace negotiations could resume,” he said.
“That optimism helped propel the Nasdaq to its ninth consecutive gain — its longest winning streak since December 2023.”
But he pointed out the local market slid throughout the days trading on a bleak domestic picture.
Westpac consumer confidence showed sentiment is near Covid lows, while NAB’s business survey data revealed a 29 point slump in March.
Meanwhile, a speech made by RBA deputy governor Andrew Hauser pointed out the potential higher interest rates and the chances of stagflation.
“Speaking in New York shortly before the opening of the local bourse, Andrew Hauser warned of a “nightmare” scenario where inflation re-accelerates even as growth weakens, a dynamic that would significantly complicate policy choices,” Mr Sycamore said.
In company news, Qantas shares slipped 0.33 per cent to $8.98 after telling the market rising fuel costs will lead to a $800m hit over the second half of the financial year and that it will cut domestic flying capacity by 5 per cent.
Major bank Westpac dragged 2.61 per cent to $41.48 after it also announced the Middle East conflict was impacting their business as the oil shock will “create a more challenging environment for some customers.”
Cleanaway Waste Management shares dropped 2.58 per cent to $2.27 after it downgraded its 2026 earning guidance by $20m due to higher fuel and logistics costs caused by the Middle East conflict.
A2Milk continued to fall, down 3.11 per cent to $7.79 following Monday’s trading update which flagged a profit warning due to struggling to ship baby formula to China.
