Snapping six days of losses the Australian share market climbed out of a muted start to the session and soared 0.7 per cent by close. Shrugging off negative leads and a poor weekly and monthly performance sentiment shifted in the afternoon.
Investors were encouraged by a two-year US budget deal averting a possible government shutdown next year and struck ahead of a US Federal Reserve monetary policy meeting this Wednesday.
In Australia the local currency was in the spotlight, falling under $US0.90 amid ongoing US taper talk speculation and Reserve Bank of Australia (RBA) jawboning.
In the week ahead the RBA’s policy meeting minutes will be in focus this Tuesday on the same day the Federal Government will reveal its mid-year budget review - which is expected to show a deeper budget deficit.
Across the sectors today most reversed earlier weakness and ended higher, led by the energy sector and supported by health and mining stocks.
Figures
The S&P/ASX 200 index soared 36 points today, trimming the weekly loss of 99 points finish at 5,098.
The value of trades was $4.8 billion on volume of 779 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and QBE Insurance Group Limited
(ASX:QBE).
On the futures market the SPI is 35 points higher.
Wall Street
US indicies have lost ground over the four trading days this week: The Dow Jones Industrial Average has lost 82 points, the S&P 500 Index has lost 10 points, the Nasdaq has lost 35 points and the 100 Index has lost 17 points.
Economic news
Business finance commitments dropped in the same period personal, lease and housing finance for owner occupiers rose last month. The Australian Bureau of Statistics reports commercial finance commitments fell 3.9 per cent to $34.34 billion in October. Personal lending commitments increased 1.7 per cent to $7.84 billion, lease finance increased 1.1 per cent to $383 million and housing finance for owner occupiers increased 1.7 per cent to $16.185 billion.
Company news
Westpac Banking Corporation
(ASX:WBC) has spruiked an upbeat outlook at its annual general meeting and flagged a modest pick-up in lending growth. Chairman Lindsay Maxsted told shareholders stronger confidence in the economy could spur more businesses to increase borrowing next year. Mr Maxsted said, “More interest is beginning to emerge from businesses as they think about investing again” and these trends support the bank's positive view about the medium-term outlook for the Australian economy. Shares in Westpac Banking Corporation firmed 0.58 per cent today, ending the week at $31.00.
Wesfarmers Limited
(ASX:WES) expects to gain $95 million after inking a deal to divest its remaining stake in West Australian based gas producer ALWA. The conglomerate has sold its 40 per cent interest to Air Liquide Australia who will take up full ownership of ALWA once the conditions of the sale are met. Shares in Wesfarmers gained 0.46 per cent today, ending the week at $41.30.
ANZ Banking Group
(ASX:ANZ) has decided to leave its standard variable home loan rate unchanged at 5.88 per cent for December, in line with the Reserve Bank of Australia's decision to keep the cash rate on hold earlier this month. Shares in ANZ Banking Group dipped 0.33 per cent today, ending the week at $30.25.
Crown Resorts Limited
(ASX:CWN) says it is in talks with the Victorian government after the state’s mid-year budget update revealed a newly proposed casino gaming machine levy of $22,715 per annum per gaming machine. Shares in Crown Resorts fell 4.33 per cent today, ending the week at $15.90.
Best and worst performers
The best performing sector was energy, gaining 167 points to close at 13,025.
The sector was the smallest gains was consumer discretionary, adding 1 point to close at 1,727 points.
The best performing stock in the S&PASX 200 was Forge Group Limited
(ASX:FGE), rising 8.33 per cent to close at $0.52. Shares in Ausdrill Limited
(ASX:ASL) and Boart Longyear Limited
(ASX:BLY) also closed higher.
The worst performing stock was Crown Resorts Limited
(ASX:CWN), dropping 4.33 per cent to close at $15.90. Shares in Evolution
(ASX:EVN) and GUD Holdings Limited
(ASX:GUD) also closed lower.
Commodities
Gold is trading at $US1,227 an ounce, slightly lower over the week.
Light crude is $0.06 higher at $US97.50 a barrel.
The Australian dollar
The Australian dollar is buying $US0.8925, down $0.0179 over the week.
