Mining and energy stocks helped push the Australian sharemarket higher at midday after taking direction from Wall Street overnight.
The benchmark S&P/ASX 200 Index rose 0.3 per cent, or 23.8 points, to 7742 at midday, with six out of the 11 sectors in the green.
There was little market reaction following the release of May retail trade data despite overshooting expectations by rising 0.6 per cent. The market consensus was for a 0.3 per cent increase.
The materials sector was the best performing as iron ore futures in Singapore traded higher to $US110.70 a tonne on the August contract. Index heavyweight BHP Group jumped 1 per cent, Fortescue Metals added 1.4 per cent and Rio Tinto rose 1.1 per cent.
Energy stocks also recorded gains, tracking a rise in the price of crude oil. Santos edged higher 0.7 per cent and Beach Energy increased 1.7 per cent.
Overnight on Wall Street, the S&P 500 notched a 32nd record higher this calendar year, and closed above 5500 for the first time. It closed 0.6 per cent higher at 5509.01.
During a panel discussion in Europe, US Federal Reserve chairman Jerome Powell said the data for April and May “do suggest we are getting back on a disinflationary path”, a point that traders interpreted as a window opening to a pivot to rate cuts.
At the European Central Bank’s policy gathering in Portugal, Powell said the US economy made “quite a bit of progress” back towards the Fed’s 2 per cent inflation target.
“Naturally, risk sentiment has been given a lift by Powell’s comments,” said Michael Brown, senior research strategist at Pepperstone.
Stocks in focus
Embattled online book retailer Booktopia has been placed in voluntary administration. McGrathNicol has been appointed to handle the process. Shares will remain suspended after they were halted in mid-June as the company searched for more funding.
APA Group shares fell 0.6 per cent after it said it expected a non-cash impairment of $145 million to its Moomba Sydney Ethane pipeline. The forecast impairment would result in a full write-down of the book value of Moomba Sydney Ethane pipeline and will be recorded in its 2024 financial year statements.
In corporate moves, lithium producer Sayona Mining has appointed former Adani country head Lucas Dow as managing director and chief executive. He has worked as an executive within ASX-listed mining companies, including BHP and South32.