July 03, 2024 at 02:45 am EDT
(MT Newswires) -- Australian shares rebounded on Wednesday amid optimism in US Federal Reserve rate cuts and higher iron ore prices.
The S&P/ASX 200 Index climbed 21.70 points, or 0.3%, to 7,739.90.
Market hopes for rate cuts in the US rose after Fed Chair Jerome Powell said the US is back on a disinflationary path.
The benchmark index was also boosted by gains in the miner-heavy materials counter, which rose 1%. Higher iron ore prices lifted mining giants, with BHP Group (ASX:BHP) rising 1% and Rio Tinto (ASX:RIO) going up 1.3%.
Iron ore prices extended their gains after Beijing disclosed measures to destock house inventories by lowering mortgage rates and relaxing downpayments, said Brian Martin and Daniel Hynes, analysts at ANZ Research.
Meanwhile, business activity in Australia's private sector grew at a slower pace in June as an extended slump in manufacturing offset services firms' expansion, according to a monthly survey conducted by Judo Bank and S&P Global. The Composite Output Index, which combines the manufacturing and services sectors, fell to 50.7 in June from 52.1 in May.
Australian industries contracted at a slower rate in June, with Ai Group's Australian Industry index rising 14.7 points to negative 25.6 in June compared with May.
Dwelling approvals in Australia rose 5.5% to 14,175 units in May, faster than the 1.9% rise the previous month. The increase was driven by a 16.3% jump in approvals for private sector dwellings excluding houses.
Australia's retail sales were boosted by shoppers taking advantage of early end-of-financial-year promotions and sales events. Australian retail turnover rose 0.6% in May, faster than the 0.1% uptick in April.
In company news, APA Group (ASX:APA) expects a roughly AU$145 million non-cash impairment to its Moomba Sydney ethane pipeline, resulting in a full write-down of its current book value. Shares of the energy infrastructure company were down 1% Wednesday.
iTech Minerals (ASX:ITM) produced a bulk concentrate of 3.4 kilograms of 94% graphite concentrate at the Lacroma graphite project in South Australia. The production was achieved with "exceptional recoveries" of about 93% using an industry standard flotation circuit. Shares of the mineral developer closed 7% higher.

Sumber : MT Newswires