Australia’s share market is heading higher as copper and critical minerals balance some profit-taking in gold producers.
The benchmark S&P ASX200 rose 42 points by midday, up 0.46 per cent to 8,989.2 as the broader All Ordinaries gained 49.3 points, or 0.53 per cent, to 9,294.1.
The uptick followed a rebound in global equities after meeting minutes showed the US Federal Reserve’s Open Market Committee leaving the door open to more interest rate cuts in 2025 while remaining cautious about inflation risks to the world’s largest economy.
“Global financial markets regained their footing after yesterday’s setback,” Westpac senior economist Mantas Vanagas said.
“The FOMC minutes confirmed that policymakers are inclined to lower the Fed funds rate further before year-end.”
Australia’s raw materials sector was the strongest performing segment, leading nine sectors into the green.
Goldminers continued to lag the precious metal’s recent record-breaking rallies, with most trading lower as spot prices eased from a new peak of $US4,059 ($A6,161) an ounce.
Copper miners and mixed producers were a sea of green however, with BHP up 1.8 per cent, Rio Tinto rising 0.4 per cent and South32 adding 3.2 per cent.
Pure copper plays surged even higher, with Sandfire Resources gaining 4.7 per cent and Capstone advancing 7.4 per cent.
The industrial metal’s price has jumped in recent weeks amid growing demand, multiple supply disruptions and smelter cutbacks in China due to a lack of concentrate.
Looking at critical minerals and rare earths, Pilbara Minerals and Lynas Rare Earths are each up more than 15 per cent in six sessions, helped respectively by a rebound in lithium prices and Lynas’ freshly inked supply deal with Noveon Magnetics.
The heavyweight financials sector has continued to underwhelm, slipping 0.2 per cent on Thursday with yet another mixed performance from the big banks.
ANZ shares edged 0.7 per cent higher to $34.63, while CBA was the laggard, slipping 0.5 per cent to $168.56 a share.
Energy stocks edged 0.1 per cent higher, while oil prices ticked lower after Hamas and Israel agreed to the first stage of a peace plan.
Coal producers also lost ground, as Whitehaven slipped 1.3 per cent to $6.43, but uranium plays like Paladin defied the broader sector to lift 1.6 per cent to $9.02.
Australia’s tech sector, along with communications and consumer discretionary stocks all rebounded from weakness earlier in the week, each tracking more than 0.8 per cent higher by midday.
Healthcare stocks gained 0.7 per cent as Mesoblast rose 4.1 per cent to continue rallying on recent revenue and US certification announcements, while CSL gained 0.8 per cent.
Cryptocurrency Bitcoin is under some pressure after hitting a new all-time high of $US126,000 on Tuesday, and is trading at around $US122,950 ($A186,425).
In other crypto news, three former bankers have launched Australia’s first fully regulated stablecoin, Macropod’s AUDM, which was used for the first time on Wednesday.
The Australian dollar is buying 65.94 US cents, up from 65.65 US cents on Wednesday at 5pm.
