Australian share market edges higher on positive Wall Street lead

After oil prices tumbled and Wall Street finished higher overnight, the local benchmark ended its three-day losing streak to finish in the green on Thursday.

The Australian share market ended its three-day losing streak on Thursday to edge higher after a positive lead from Wall Street as traders trimmed their bets that the US Federal Reserve can refrain from further rate hikes.

The moves were triggered by the monthly ADP private payrolls report in the US, which showed that new hires had de-accelerated to levels well below market expectations.

In response, the Nasdaq surged 1.4 per cent higher after a rally in Tesla, Microsoft, Apple and Amazon stocks.

After reaching an 11 month low during trading on Wednesday, the S & P/ASX 200 rebounded 0.5 per cent to 6,925.5 points, while the broader All Ordinaries similarly finished 0.5 per cent higher to close at 7,117.6

A positive private payrolls report which showed new jobs numbers were weaker than anticipated pushed US equities higher on Wednesday. Picture: Bryan R. Smith / AFP

On the benchmark, eight of 11 sectors finished in the green, with real estate and tech stocks leading the gains, up 2.1 per cent and 1.8 per cent respectively.

Energy stocks were the worst performing on the benchmark, falling 0.9 per cent and hit their lowest levels since July 12 on weak oil prices. Brent Crude sits at $US86.36 a barrel.

Santos declined 0.4 per cent to $7.42, Woodside Energy fell 0.8 per cent to $34.31 and Whitehaven Coal dropped 1.3 per cent to $6.75.

Shares in iron ore miners also fell after November iron ore futures in Singapore slipped 0.1 per cent to $US115.3 per tonne. ASX giant Rio Tinto slumped 1.5 per cent to $111.91, BHP dropped 0.7 per cent to $43.43, but Fortescue was unchanged at $20.78

Iron ore miners Rio Tinto and BHP sank after Singapore futures on the November contract sank 0.1 per cent. Picture: supplied.

In company news, shares in Pexa fell 1.8 per cent to $10.90 a share on news that the digital real estate settlement services firm would acquire UK-based conveyancing technology provider Smoove for £31 million.

4WD vehicle accessories manufacturer and distributor ARB dropped 1.1 per cent after its shares traded ex-dividend.

Gold miner Westgold Resources jumped 2.5 per cent to $1.62 after it announced it was on track to achieve its 2024 financial year guidance on the back of strong September quarter results.

Embattled airline Qantas jumped 2.2 per cent to $5.04 after it touched a 12-month low on Wednesday.

The Australian dollar also rebounded from its 11-month lows to trade at US63.60¢ after hitting lows of US 62.83¢ last week. The Aussie has lost more than 5¢ of its value since mid-July due to differences in interest rates between Australia and the United States.

Prices for the West Texas Intermediate November contract shed $US5.01 to settle at $US 84.22 a barrel on Wall St overnight. Picture: Omar Torres / AFP

eToro market analyst Josh Gilbert said despite losses in the energy sector, the session was more positive as fears over further rate hikes lessened.

“As we’re seeing this pullback in oil, it’s pretty positive for the overall idea that the RBA stays on hold now and we may have seen sort of the final hikes,” Mr Gilbert said.

“As far as central banks go, the RBA is at the front of the queue in that it is likely going to be one of the ones that cuts rates first.”

He added that as higher rates pushed economic growth to slow, demand for oil would fall, pushing down prices.

“We don't believe that oil prices are going to stay high for longer,” Mr Gilbert said, adding that oil prices would “self-correct and start to come down, which overall is obviously positive for the whole narrative around inflation.”