Australian Shares Rise Amid Mixed Market Conditions
The Australian share market had a mixed day on September 7, with oil prices and jobs report news influencing various sectors. The S&P/ASX200 rose by five points to 9010.9, a 0.06% increase.
Iron ore giants such as BHP, Rio Tinto, and Fortescue Metals Group lifted after China's government announced a $US54 billion injection into state banks and insurers. This move pushed iron ore futures above $US100 a tonne for the first time since July 2.
However, gold stocks capped gains in raw materials as the precious metal eased to $US4393 following a stronger-than-expected US jobs report, increasing the odds of a Federal Reserve interest rate hike. The market is now fully pricing a Reserve Bank of Australia (RBA) interest rate hike by November 3.
Joseph Marassa from Global X ETF strategy noted that if energy and materials continue to diverge from rate-sensitive sectors, capital gains from equities will be limited. The heavyweight financials sector inched higher due to decent performances by NAB and CommBank, while technology stocks underperformed with a 2.6% decline.