• Shares climbed over 1pc, as ASX 200 closed above 7,000 level
  • Traders were bullish after dovish comments from Fed Reserve officials
  • Origin Energy takeover is official after ACCC approval

 

Local shares rose over 1% on Tuesday, taking the benchmark ASX200 index over the psychological 7,000 level to 7,046.

All sectors finished in the green, led by interest rates sensitive sectors Tech and Real Estate after some dovish comments from Fed Reserve members overnight.

Fed Vice Chair Philip Jefferson said Fed officials should “proceed carefully” after the recent surge in bond yields.

Earlier, Fed Bank of Dallas President Lorie Logan also said the recent surge in bond yields meant the Fed might not need to tighten again.

“We are at or very near the top of the interest rate cycle,” said Olivier d’Assier of Axioma.

“The economy is resilient. Inflation is on the run. Consumers can’t stop spending. The jobs market remains tight.

“Earnings may have bottomed out in Q3. And the pivoters can’t stop publishing stories about where valuations will end in the place where it all began.”

There’s also more good news closer to home as NAB’s September business survey showed labour cost growth has eased to 2%, bolstering the case that inflation is on its way down.

Elsewhere in the region, Asian stock markets mainly advanced, with Nikkei jumping by 2.5%.

Despite the rally today, most traders are mostly still on edge, watching tensions in the Middle East and hoping the war won’t escalate to a full blown regional one.

 

BIG CAP WINNERS

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Utility was the best performer today after sector leader Origin Energy (ASX:ORG) announced that Australia’s consumer watchdog (ACCC) has approved its $18.7 billion takeover by Canada’s Brookfield and the US-based MidOcean.

Lynas Rare Earths (ASX:LYC) rose 2% after announcing that Kathleen Conlon will retire from the Board as Chairman and independent Non-Executive Director, effective from the conclusion of the company’s AGM on 29 November. John Humphrey, an independent Non-Executive Director since 2017, has been elected to succeed Conlon in the role of Chairman.

App maker Life360( ASX:360) rose after correcting research notes from an unnamed broker. The company says the Monthly Active User (MAU) data reported by the broker were based on inaccurate information from a third-party provider. At September 30, Life360 said its global MAU should be  58.4 million, a quarter-on-quarter uplift of 8.1% from 54.0 million at June 30.

 

BIG CAP LOSERS

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Judo Capital (ASX:JDO) slipped after announcing that it was considering an inaugural Capital Notes offer. The potential offer is being considered in order to raise Additional Tier 1 Capital for Judo Bank, the sole operating subsidiary of Judo, as part of its strategic plan to further develop and diversify its funding and capital sources.