Markets wrap: ASX caps another volatile week with broad-based rally

The Australian sharemarket followed Wall Street higher to finish the week higher.

The Australian sharemarket capped another seesawing week with a strong Friday performance after overnight gains on Wall Street gave investors a confidence boost.

A broad-based rally helped all local sectors higher and pushed the benchmark ASX 200 index up 76.8 points, or 1.1 per cent, to finish the week at 7182.7.

The gain meant the market rose 0.5 per cent across the five sessions despite inflation fears and concerns over a global economic slowdown causing it to flip-flop between rises and falls.

The All Ordinaries managed to gain 73.8 points, or 1 per cent, to finish Friday at 7413.1, while improved risk sentiment sent the US dollar lower, helping the Aussie climb to 71.35 US cents by the local close.

The big banks were strong, while the heavyweight mining sector also finished ahead, even though Fortescue Metals and the gold producers had an off day.

Commonwealth Bank was the best of the Big Four lenders with a 1.1 per cent rise to $106.63. Picture: NCA NewsWire / David Swift

Energy companies also outperformed after oil prices jumped on US government data that showed stockpiles at eight-year lows.

US markets had paved the way for a strong local session after traders enjoyed strong earnings results from department store retailers Macy’s and Dollar General.

Technology stocks such as Tesla, Apple and Amazon were also buoyant amid hopes the US Fed may not have to hike rates as strongly as some have previously forecast.

OANDA Asia-Pacific senior analyst Jeffrey Halley said this ultimately helped investors gloss over weakening China industrial profits, which fell from an annual gain of 8.5 per cent in March to 3.5 per cent in April.

“The Shanghai shutdowns and Covid-zero policies account for the slowdown, but market impact was minimal as the number was right on market expectations,” Mr Halley said.

“China will have bigger fish to fry going forward as it tries to keep growth and the property market on track, while enacting sweeping lockdowns across parts of the country thanks to its Covid-zero policy.”

Among energy companies Woodside rose 3.6 per cent to $30.14 and Santos was up 1.1 per cent to $8.24. Picture: NCA NewsWire / Jeremy Piper

Commonwealth Bank was the best of the Big Four lenders with a 1.1 per cent rise to $106.63, while Westpac was up 0.8 per cent to $24.09, NAB climbed 0.4 per cent to $31.68 and ANZ gained 0.6 per cent to $25.68.

Macquarie Group recouped some of its recent losses with a 2.9 per cent leap to $183.

BHP surged 2.5 per cent to $43.67 and Rio Tinto rose 2.4 per cent to $113.39 as iron ore futures rallied, although Fortescue dropped 1.7 per cent to $19.59.

Gold also lost a little of its lustre as a safe haven to weigh on Northern Star, Evolution, St Barbara and Regis Resources.

Newcrest still managed to eke out a 0.4 per cent gain to $24.74.

Tech firm Appen came crashing back to earth after its Canadian suitor Telus pulled the plug on a proposed $1.2 billion takeover bid.

The artificial intelligence services company lost 20.9 per cent to close at $6.54, having leapt nearly 30 per cent the previous day.

Block Inc fared much better with a 5.9 per cent rise to $117.10, while Wisetech Global added 2.1 per cent to $41.67 and Altium was up 1 per cent to $28.44.

Among energy companies Woodside rose 3.6 per cent to $30.14 and Santos was up 1.1 per cent to $8.24, while Beach Energy climbed 3.8 per cent to $1.64 and AGL was up 3 per cent to $8.87.