Banks, tech stocks pull Aussie shares higher ahead of inflation data
AXJO hits highest daily close since February 19
Australian CPI data awaited
RBNZ expected to cut rates on Wednesday
May 27 (Reuters) - Australian shares ended at more than three-month high on Tuesday, driven by gains in financials and technology stocks, while investors awaited the release of the April inflation data, which is expected to show further moderation.
The S&P/ASX 200 index rose 0.5% to 8405.4, the highest daily close since February 19. The benchmark had ended flat on Monday.
"I think we are in a quiet period for the market in the lead up to (the) end of (the) financial year... market is bouncing around on macroeconomic news, which... is looking positive for equities," said Luke Winchester, portfolio manager at Merewether Capital. Australia's financial year ends on June 30.
Financials gained 1.1%, with the "Big Four" banks rising between 0.9% and 1.4%.
The banks have gained since the RBA's rate reduction in May, buoyed by expectations of lending volume growth on lower rates.
"However, the next big move in banks is almost certainly down as they have very limited room to rise further without earnings growth," said George Kurian, portfolio manager at Oracle Investment Management.
Technology stocks added 1.2%, touching the highest since February 24 earlier in the session.
The sub-index extended its gains from Monday, with WiseTech Global rising 2.5% to lead the rally a day after announcing its mega $2.1 billion takeover deal.
Dragging the index lower, miners fell 0.3% on falling iron ore prices. Real estate stocks lost 0.4%.
Investors are waiting for the Consumer Price Index (CPI) data on Wednesday to glean clues on the Reserve Bank of Australia's (RBA) next move, with analysts expecting the monthly rate to have eased to 2.3% in April from 2.4% a month ago.
The market has priced in a 67% chance of an RBA rate cut in July. 0#AUDIRPR
New Zealand's benchmark S&P/NZX 50 index closed 0.3% higher at 12,582.33 points, a day ahead of the local central bank's rate decision, where a 25-basis-point cut is expected, a Reuters poll showed. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sumana Nandy)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
35 minutes ago
- Business Standard
Data error may have pushed up UK inflation, rate cut bets in April: ONS
The data error means the inflation rate would have been closer to the 3.3 per cent consensus forecast and 3.4 per cent predicted by the central bank Bloomberg Britain's statistics agency said it overstated the official inflation rate due to a mistake in numbers it was given on vehicle taxes, the latest in a string of errors to plague the country's economic data. The Office for National Statistics said Thursday the headline inflation rate was 0.1 per cent higher than it should have been in April's market-rattling figures, as a result of incorrect vehicle excise duty data from the government's transport department. While the ONS will not revise its inflation estimate, it will use the correct data for May. The error may have contributed to the sharp market reaction to April's inflation data. It means that the spike in prices seen in April was less severe than first thought after inflation jumped to a 15-month high of 3.5 per cent. The bigger-than-expected pick-up in price pressures in April's initial data prompted traders to cut bets on an easing in interest rates by the Bank of England. It helped to retrench expectations of fewer reductions after the central bank's hawkish tone at the May meeting. The data error means the inflation rate would have been closer to the 3.3 per cent consensus forecast and 3.4 per cent predicted by the central bank and a plurality of economists including Bloomberg Economics. Markets were little changed following Thursday's statement, fully pricing in one more rate cut for this year. Other volatile factors are thought to have pushed up April's figure with the ONS collecting price data for air fares over Easter when demand spikes. Credibility The error is the latest to undermine the credibility of the UK's official economic statistics after a series of high-profile problems that first hit its labor market statistics before spreading to other numbers. It is the second time in recent months that its price statistics have been affected by errors with the ONS suspending its producer price figures in March. The ONS has faced mounting pressure and is awaiting the outcome of a government probe into its failings. It is also without a permanent head after National Statistician Ian Diamond resigned last month on health grounds. The latest error related to an overstatement of the number of vehicles subject to vehicle excise duty rates applicable in the first year of registration. VED is a tax applied to every vehicle using public roads in the UK, adjusted according to their environmental impact. It is expected to raise over £9 billion ($12.2 billion) in the current fiscal year, according to the Office for Budget Responsibility. 'This has the effect of overstating the headline Consumer Price Inflation (CPI) and Retail Prices Index (RPI) annual rates by 0.1 percentage points for the year to April 2025 only. No other periods are affected,' the ONS said in a statement. 'We are reviewing our quality assurance processes for external data sources in light of this issue.'
Business Standard
an hour ago
- Business Standard
Indices trade higher; European mrkt advance
The domestic equity barometers traded with substantial gains in afternoon trade, supported by buying interest amid positive global sentiment, expectations of a rate cut in the upcoming RBI policy meeting later this week, and continued foreign fund inflows. While investors await the policy outcome, they are also closely monitoring bond markets, Brent crude trends, and global trade developments. The Nifty traded above the 24,750 mark. Realty, pharma and FMCG shares advanced while PSU Bank, auto and private bank stocks declined. At 13:25 IST, the barometer index, the S&P BSE Sensex, advanced 475.63 points or 0.59% to 81,473.37. The Nifty 50 index jumped 148 points or 0.60% to 24,768.20. In the broader market, the S&P BSE Mid-Cap index rose 0.53% and the S&P BSE Small-Cap index added 0.73%. The market breadth was strong. On the BSE, 2,369 shares rose and 1,473 shares fell. A total of 185 shares were unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.87% to 15.29. Gainers & Losers: Eternal (up 4.98%), Trent (up 3.52%), Dr Reddys Laboratories (up 3.40%), Power Gird Corporation of India (up 2.03%) and Shriram Finance (up 1.79%) were the major Nifty gainers. Dr. Reddy's Laboratories rallied 3.40% after the company announced a collaboration with Iceland-based Alvotech to co-develop and commercialize a biosimilar to Keytruda (pembrolizumab) for global markets. IndusInd Bank (down 1.11%), Bajaj Finserv (down 0.79%), Maruti Suzuki India (down 0.67%), Bajaj Finance (down 0.63%) and Axis Bank (down 0.44%) were the major Nifty losers. Stocks in Spotlight: Angel One added 3.54% after the firm announced that its client base jumped 34.1% to 31.95 million in May 2025, compared with 23.83 million in May 2024. Power Grid Corporation of India added 1.99% after the company said that it has acquired MEL Power Transmission (MPTL), a special-purpose vehicle, for an aggregate value of Rs 8.53 crore. Force Motors rallied 3.35% after the companys domestic sales jumped 24.46% to 3,002 units in May 2025, as against 2,412 units sold in May 2024. Newgen Software Technologies rose 0.70% after it has received an order worth $2.5 million (approximately Rs 20.8 crore) from an international customer for the procurement of an enterprise workflow and content management system. Garden Reach Shipbuilders & Engineers added 4.23% after the company announced the signing of memorandum of intent (MoI) and memorandum of understandings (MoUs) with various entities in Norway. CESC declined 1.15%. The company said that its subsidiary, Purvah Green Power, has signed a framework agreement with Envision Energy India for the supply and commissioning of 1 GW wind turbine generators (WTGs). Global Markets: Most European markets advanced as investors awaited a rate cut from the European Central Bank (ECB). The central bank widely expected to trim interest rates by 25 basis points, taking its key rate, the deposit facility rate, to 2% German factory orders rose 0.6% in April from the previous month, preliminary data showed on Thursday. The Federal Statistical Office said the rise in April was largely due to a significant increase in the manufacturing of data processing equipment, electrical goods and optical products. Most Asian indices rose on Thursday, with the South Korean market extending gains from the previous session. Investor attention remained on a potential call between former U.S. President Donald Trump and Chinese President Xi Jinping, which the White House indicated could take place this week. Optimism surrounding the potential dialogue contributed to gains on Wall Street earlier in the week. The Caixin China services purchasing managers index came in at 51.1 in May, rising from 50.7 in April and remaining above the 50-mark, which separates an expansion from a contraction. Chinas services activity in May climbed from the month before, buoyed by rising tourism activity. However, new export orders slowed at a slightly lower pace, weighed by uncertainty from the U.S. tariffs. On Wednesday, U.S. markets closed mixed. The Dow Jones Industrial Average declined by 0.22%, while the S&P 500 inched up 0.01% and the Nasdaq Composite gained 0.32%, supported by strength in technology stocks. Meanwhile, private sector hiring in the U.S. fell to its lowest level in over two years. Data from payroll processor ADP showed that payrolls increased by only 37,000 in May, compared to a revised 60,000 in April. The report has heightened concerns about the impact of trade-related uncertainty on the U.S. economy. The data precedes the release of the official nonfarm payrolls report for May, scheduled for Friday, which investors now expect to show further weakness.
Business Standard
an hour ago
- Business Standard
Nifty above 24,800 level; IT shares in demand
The domestic equity barometers traded with strong gains in early afternoon trade, supported by buying interest amid positive global sentiment, expectations of a rate cut in the upcoming RBI policy meeting later this week, and continued foreign fund inflows. While investors await the policy outcome, they are also closely monitoring bond markets, Brent crude trends, and global trade developments. The Nifty climbed above the 24,800 level after hitting the day's low of 24,613.10 in the early trade. IT stocks extend gains for second consecutive session At 12:30 IST, the barometer index, the S&P BSE Sensex, advanced 649.59 points or 0.80% to 81,639.62. The Nifty 50 index jumped 198.20 points or 0.81% to 24,816.40. In the broader market, the S&P BSE Mid-Cap index rose 0.65% and the S&P BSE Small-Cap index added 0.79%. The market breadth was strong. On the BSE, 2,456 shares rose and 1,333 shares fell. A total of 187 shares were unchanged. Derivatives: The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.42% to 15.36. The Nifty 26 Jun 2025 futures were trading at 24,927, at a premium of 110.6 points as compared with the spot at 24,611.95. The Nifty option chain for the 26 June 2025 expiry showed a maximum call OI of 54.3 lakh contracts at the 26,000 strike price. Maximum put OI of 55.8 lakh contracts was seen at a 24,000 strike price. Buzzing Index: The Nifty IT index rose 1.12% to 37,350.45. The index added 1.45% in the past two trading sessions. Coforge (up 3.65%), Persistent Systems (up 2.38%), Oracle Financial Services Software (up 2.15%), Mphasis (up 1.51%), HCL Technologies (up 1.29%), Wipro (up 0.66%), Infosys (up 0.55%), Tata Consultancy Services (up 0.48%), LTIMindtree (up 0.46%) and Tech Mahindra (up 0.45%) advanced. Stocks in Spotlight: Angel One added 3.36% after the firm announced that its client base jumped 34.1% to 31.95 million in May 2025, compared with 23.83 million in May 2024. Power Grid Corporation of India added 2.18% after the company said that it has acquired MEL Power Transmission (MPTL), a special-purpose vehicle, for an aggregate value of Rs 8.53 crore. Garden Reach Shipbuilders & Engineers added 3.87% after the company announced the signing of memorandum of intent (MoI) and memorandum of understandings (MoUs) with various entities in Norway.
