Australian shares push towards record despite GDP flop
The Australian share market is within 0.4 per cent of its best ever close, despite global tariff tensions and sluggish economic growth.
The S&P/ASX200 rose 66.2 points, or 0.78 per cent, to 8,532.9, as the broader All Ordinaries gained 69.1 points, or 0.80 per cent, to 8,760.
"The Aussie market is just a puff away from hitting its record all-time high, and today we'll inch closer to the mark," Moomoo market strategist Jessica Amir said.
"From this point we should expect further highs as company earnings and economic growth build market momentum and investors' FOMO (fear-of-missing-out) kicks in."
Australia's economy grew at a tepid 0.2 per cent in the March quarter, undershooting expectations of 0.4 per cent and leaving the door open to an interest rate cut at the Reserve Bank's July meeting, but things could be worse, Ms Amir said.
"In fact, the Organisation for Economic Co-operation and Development suggests Australia's economy is in better shape than the US," she said.
The OECD expects the Australian economy to grow 1.8 per cent this year and 2.2 per cent the next, compared with a projected 1.6 per cent and 1.5 cent cent for the US economy
Ten of 11 local sectors were trading higher by lunchtime, with only telecommunications services in the red, down 0.2 per cent.
Energy stocks were racing ahead, up 1.9 per cent as oil prices chopped 0.7 per cent higher overnight, as uncertainty around production, trade disputes and geopolitical tensions pushed Brent futures to $US65.32 a barrel.
The overnight increase helped Woodside jump 2.4 per cent to $22.69.
Banks and miners were lifting the bourse, up 1.1 per cent and 0.7 per cent respectively.
The Commonwealth Bank has hit a new intraday record, cracking $180 per share for the first time.
Westpac rose 1.3 per cent to $33.04, as it announced it had sufficient provisions to cover penalties for a court action against its subsidiary home loan provider RAMS.
Large cap miners were lapping up some gains after weak recent performance, as BHP lifted 1.4 per cent to $38.07 and Fortescue rallied two per cent to $15.32.
Lithium and rare earth plays also snapped back, as Pilbara Minerals jumped more than four per cent and Lynas Rare Earths pushed 2.5 per cent higher.
Gold miners were lagging the sector, as gold prices zigzagged overnight against an appreciating US dollar, with futures trading at $US3,394 ($A5,240) an ounce.
The highly interest rate-sensitive consumer discretionary sector is rallying, up 1.3 per cent, with Temple and Webster, Aristocrat Leisure and Guzman Y Gomez all pushing more than two per cent higher.
Zip Co was the top-200's best performer, up more than 10 per cent as confidence around future potential Reserve Bank interest rate cuts bolstered the buy-now, pay-later play.
The Australian dollar has shot 0.25 per cent higher immediately after Wednesday morning's weaker than expected GDP print.
The Aussie is buying 64.77 US cents, up slightly from 64.63 US cents on Wednesday at 5pm.
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