ASX200 rises on miners; BHP, South32, Rio climb as A2 Milk to defend NZ class action

ASX climbs for fourth day led by the materials sector. Fortescue up on Forrest's new role, A2 Milk to defend NZ class action, Boral $45m earnings hit and UK inflation hits 40-year high.

Equity investors are bracing for a rollercoaster ride amid rising inflationary and rates pressures. Picture: Bianca De Marchi.

Welcome to the Trading Day blog for Wednesday, May 18. The Australian share market rose for a fourth consecutive session as the materials sector rallies on a rise in base metal prices. It comes as UK inflation hits 9 per cent for the year to April and Andrew Forrest is named as executive chair at Fortescue. 

The S&P/ASX 200 index finished 1 per cent higher to 7182.70 with Champion Iron, South32 and Flight Centre among the best performing stocks.

On Wall Street, buyers swooped on technology stocks amid a widespread rally which saw the Nasdaq soar 2.8 per cent, S&P 500 gain 2 per cent and the Dow Jones Industrial Average add 1.3 per cent.

Investor sentiment was buoyed by a 0.9 per cent rise in retail spending, an indication of consumer confidence despite inflation concerns, and industrial production growth. Fed chairman Jerome Powell’s resolve to fight inflation despite “some pain involved” pared some gains before a rebound.

The US 10-year bond yield was higher at 2.98 per cent.

Oil fell with Brent crude down 2.0 per cent to $US111.93 per barrel and the WTI Nymex is 1.6 per cent weaker at $US112.40 per barrel.

The iron ore futures price fell 0.7 per cent to US$131.58 a tonne.

The Aussie dollar was up around US70.2c at the US close.