The S&P/ASX 200 index looks set to continue its push higher again on Thursday. At lunch the index is up 0.2% to 6,702.3 points.
Here’s what has been happening on the market today:
APRA hits back at the banks.
Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) shares came under pressure this morning after APRA provided the banks with a response to their Culture, Governance and Accountability self-assessment processes. According to the release, APRA has decided to apply an additional $500 million to their operational risk capital requirements. The capital add-ons will apply until the banks have completed remediation to strengthen risk management and closed gaps identified in self-assessments. Despite this and a potential class action against it, the NAB share price has managed to push slightly higher today.
Tech shares race higher.
Many of Australia’s leading tech shares have followed the lead of their U.S. counterparts by racing higher again on Thursday. Overnight the Nasdaq index pushed 0.75% higher thanks to trade talk developments and a dovish Federal Reserve. On the local market the Appen Ltd (ASX: APX) share price is up almost 3% and the Altium Limited (ASX: ALU) share price is 2.5% higher at lunch.
Gold miners on fire.
Regis Resources Limited (ASX: RRL), Resolute Mining Limited (ASX: RSG), and the rest of the gold miners have been on fire on Thursday after the gold price charged higher. According to CNBC, the spot gold price rose 1.4% to US$1,420.40 an ounce overnight and has continued to strengthen during Asian trade. At the time of writing the spot gold price is up to US$1,426 an ounce. The catalyst for the rise in the gold price was a testimony by U.S. Federal Reserve chair Jerome Powell which indicated that a rate cut would be coming very soon.
Best and worst performers.
The best performer on the ASX 200 at lunch is Resolute Mining share price which has pushed a remarkable 8% higher following the rise in the gold price. Going the other way is the Sims Metal Management Ltd (ASX: SGM) share price which is down 3.5% after being downgraded by analysts at Ord Minnett. The broker now rates the scrap metal company as a hold with a reduced price target of $11.00.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Altium, Appen Ltd, and National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.