The Australian sharemarket staged a major turnaround today, ending the session 5 points, or 0.1% higher after falling as much as 1.6% around lunchtime. It's the second major turnaround in the last week or so for the ASX and will do a world of good for the market's confidence.
Here are the key numbers you need to know about
- S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up 5 points, or 0.1%
- ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) up 2 points
- AUD/USD up 0.4% to US70.4 cents
- GDP growth of 0.2% for June quarter
Although weak international leads, poor GDP numbers and further weakness from China's share market all weighed on the market's sentiment for most of today, the ASX rebounded upon strength in Wall Street futures, indicating a stronger session tonight.
The Fairfax press also highlighted speculation that state-backed funds were stabilising the Chinese stock market ahead of a major military parade on Thursday, which no doubt bolstered Australia's own market.
Meanwhile, investors also appeared to come to terms with Australia's weak GDP numbers, which grew just 0.2% for the June quarter.
The Australian dollar plunged to a fresh six-year low of US 69.82 cents but that too has rebounded to US 70.4 cents.
BHP Billiton Limited (ASX: BHP) led the turnaround with the stock closing just 0.4% lower after falling more than 2.5% earlier.
However, Woodside Petroleum Limited (ASX: WPL) and Origin Energy Ltd (ASX: ORG) both closed heavily in the red, down 1.6% and 4.5% respectively, following a near 9% fall in oil prices overnight.
Meanwhile, all four of the major banks closed higher. Australia and New Zealand Banking Group (ASX: ANZ) rose 1.3%, while each of its peers gained between 0.4% and 1%.
Here are Wednesday's top stories:
- GDP grew at just 0.2% for the June quarter, the slowest quarterly growth in more than two years
- Low GDP growth could lead to further interest rate cuts from the Reserve Bank of Australia
- Telstra Corporation Ltd (ASX: TLS) is now offering a remarkable 7% dividend yield
- One broker has named Fortescue Metals Group Limited (ASX: FMG) a buy, despite the headwinds facing the resources sector
