ASX200 climbs higher after Wall St rebound

Aussie shares booked a positive session on Monday on the back of a relief rally from Wall St on Friday.

The sharemarket lifted on Monday on the back of a surging Wall St rebound and a rise in local tech stocks.

The benchmark ASX200 rose 68.3 points, or 0.86 per cent, to close at 7989.6, while the broader All Ordinaries index climbed 70.9 points, or 0.87 per cent, to finish at 8224.3.

Tech stocks jumped 1.49 per cent to 3123.9.

The gains were broadbased, with all 11 industry sectors ending in the green, led by IT with a 1.53 per cent lift.

Local tech darlings WiseTech advanced 2.22 per cent to $95.46 a share, while Xero rose 1.21 per cent to $134.14 and Computershare added 1.85 per cent to $28.01.

Monday’s lift followed a sharp rebound on Wall St on Friday night.

The release of personal income and expenditure data from June suggested moderating inflation in the US and solidified investor confidence the US Federal Reserve will cut interest rates in September.

The Dow Jones gained 654 points on the news, or 1.64 per cent, to hit 40,589 points, while the S and P 500 index lifted 1.11 per cent to reach 5459.

The tech-heavy Nasdaq index recouped some sharp losses from earlier in the week to add 1 per cent to 17,357.

Monday’s buoyancy belied some looming storm clouds for Australian equities with the impending release of a “make or break” CPI print on Wednesday.

“It’s fair to say this is the most important data point Australia has received all year,” eToro market analyst Josh Gilbert said.

The Australian sharemarket booked a positive session on Monday. Picture Newswire/ Gaye Gerard.

“There’s no doubt the Reserve Bank of Australia’s job over the next few months remains difficult.

“Data points have been mixed, with unemployment climbing, but seeing strong employment additions and retail sales data coming in surprisingly strong.

“Ultimately, the central bank is still reluctant to hike rates any further, with a hike likely to concede the fact the board may have made a policy mistake.

“Meanwhile, pessimists are taking a ‘never say never’ approach and believe that if inflation not only remains firm but starts moving upwards again, the RBA may act hawkishly to prevent rapid price escalation.”

The big miners booked a muted day, with BHP giving up some gains in morning trade to close down 0.07 per cent to $42.07.

Rio Tinto edged down 0.03 per cent to $115.87 and Fortescue traded flat to close at $20.35.

The big banks were mixed.

Commonwealth Bank rose 1.32 per cent to $134.90, NAB lifted 1.31 per cent to $37.90 and Westpac climbed 1.4 per cent to $28.99, but ANZ fell 1.17 per cent to $28.82.

In corporate news, Central Queensland coal miner Stanmore Resources jumped 2.16 per cent to $3.78 after reporting a bump in run-of-mine production for the June quarter to 4.9Mt.

Online beauty retailer Adore Beauty announced the appointment of former General Pants Co boss Sacha Laing as its new CEO from October 1.

“Sacha’s extensive retail and omnichannel experience aligns with our strategic initiatives and will be invaluable in driving Adore Beauty’s future growth,” chair Marina Go said.

The stock gained 3.23 per cent across the day to close at 96c.

Uranium miner Boss Energy confirmed it had withdrawn a non-binding offer to Rio Tinto subsidiary Energy Resources of Australia to acquire the Jabiluka mining site following last week’s decision from the federal government to end Jabiluka’s mineral lease.

The company fell 4.41 per cent to close at $3.47.

The top gainer on the ASX200 was gaming company Star Entertainment, which leapt 14.7 per cent to 58.5c.

The largest laggard was Fletcher Building, which slumped nearly 6 per cent to $2.83.

The Aussie dollar gained 0.11 per cent to buy US65.5c at the closing bell.

Originally published as ASX200 climbs higher after Wall St rebound