Stocks up as Trump’s political fortunes decline

The Australian sharemarket was higher at noon following gains in financial and resources stocks.

Daniel Palmer

Market gains are displayed on the Australian Securities Exchange (ASX) trading board in Sydney. (AAP Image/Mick Tsikas)

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12:49PMOctober 10, 2016.

Updated 2:35PMOctober 10, 2016

AAP

The Australian sharemarket has been led higher by gains in financial and mining stocks.

The benchmark S & P/ASX200 index has given up some of its early gains but was still up 0.28 per cent to 5,482.6 points at noon (AEDT), with the big four banks in the vanguard despite a soft lead from Wall Street in the wake of a weaker-than-expected US jobs report.

The broader All Ordinaries index was up 15.3 points, or 0.28 per cent, at 5,563.8 points.

Commonwealth Bank rose 22.0 cents, or 0.30 per cent, to $74.60; Westpac lifted 26 cents, or 0.85 per cent, to $30.83; ANZ gained 10 cents, or 0.35 per cent, to $28.36 and National Australia Bank was 18 cents, or 0.64 per cent, better off at $28.35.

Mining giant BHP Billiton was up 21.0 cents, or 0.90 per cent, to $23.51 and rival Rio Tinto has risen 11 cents, or 0.21 per cent, to $52.11. Engineering firm UGL has surged almost 50 per cent on news of a $524 million takeover bid by rival ASX-listed rival CIMIC, hitting $3.18 at noon. But energy stocks fell after oil prices slipped more than one per cent. Santos dropped 4.0 cents, or 1.03 per cent, to $3.86, while Oil Search fell 15 cents, or 2.0 per cent, to $7.36.

Earlier, CMC Markets chief market analyst Ric Spooner said investors were comfortable with steady, if unspectacular, US data and had welcomed news of horrific comments from Donald Trump that have seen him shunned by some former Republican supporters.

“While US jobs data on Friday did little to change the market outlook, the weekend’s political developments and today’s presidential debate may be a positive for markets,” he said.

“Markets clearly look upon a Trump presidency as a risk factor but appear to be pricing an assumption that it’s fairly unlikely to happen.

“Even so, if today’s debate produces a Clinton win and cements the damage of the recent tapes to Trump’s prospects, markets may respond positively as the risk of a Trump victory becomes even less likely.”

AAP