Australian shares rally following promising vaccine news
Australian shares have surged at the open of the trading day following positive news of a potential new coronavirus vaccine.
Business Breaking News
Don't miss out on the headlines from Business Breaking News. Followed categories will be added to My News.
Australian shares have surged at the open of Tuesday’s trading day after positive news out of the US of a promising new coronavirus vaccine.
The benchmark S&P/ASX 200 index hit a 100-day high, rising 139.4 points, or 2.2 per cent, to 6438.2 at the beginning of the trading day. It follows strong gains made on Wall Street after pharmaceutical heavy Pfizer announced its potential COVID-19 vaccine had been 90 per cent effective in clinical trials.
The broader All Ordinaries index gained 127.7 points, or 1.9 per cent, to 6643.4, also hitting a 100-day high.
The global stock market rally is also being fuelled by Joe Biden’s election as the next US president, which is providing a more stable outlook for US markets.
Major banks have risen significantly, with NAB shares up 7.4 per cent to $21.22 in the early hours of the trading day.
Commonwealth Bank was up 3.8 per to $72.98 per share shortly after 11am, while both ANZ and Westpac experienced share surges of more than 6 per cent.
The news of a promising vaccine lifted aviation stocks, potentially signalling a resurrection of the global travel industry.
At 11.17am, Qantas stock had risen 10.8 per cent to $5.17 per share, while Sydney Airport shares lifted 11.6 per cent to $6.74 each.
Westfields owner Scentre Group’s stock price ascended 12 per cent to $2.70 per share.
Tuesday’s rise has also coincided with a sharp improvement in consumer confidence, according to the latest ANZ Roy Morgan weekly index.
Consumer confidence rose 3.2 per cent on last week, with ANZ economist David Plank noting lower interest rates had triggered a rise in sentiment.
“There is sharp improvement in ‘time to buy a major household item’, which could signal a buoyant Christmas shopping period,” Mr Plank said.
“Lower interest rates and the RBA’s commitment to support employment could have been triggers for the gain.”
Originally published as Australian shares rally following promising vaccine news