The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday as investors move back into the major banks.
At the time of writing, the ASX 200 is up 0.91% to 8,759 points.
That follows a 0.19% fall on Tuesday and puts the benchmark index back on firmer ground heading into the afternoon.
The move is being led by the S&P/ASX 200 Financials Index (ASX: XFJ), with all 4 major banks trading strongly higher.
There is also support coming from parts of the S&P/ASX 200 Resources Index (ASX: XJR), although the gains are not spread evenly across the market.
Here's what investors are looking at today.
Image source: Getty Images
Banks do the heavy lifting
The major lenders are doing most of the work today, helped by their large weighting in the ASX 200.
Commonwealth Bank of Australia (ASX: CBA) shares are up 2.65% to $177.44, while Westpac Banking Corp (ASX: WBC) is jumping 3.75% to $39.04.
National Australia Bank Ltd (ASX: NAB) is also higher, rising 3.09% to $40.16. ANZ Group Holdings Ltd(ASX: ANZ) is up 3.17% to $37.09.
Macquarie Group Ltd (ASX: MQG) is also helping the sector, with its shares up 1.39% to $240.28.
The buying comes after the market pulled back on Tuesday following the Reserve Bank of Australia's (RBA) latest rate hike. The cash rate now sits at 4.35%, but investors appear to be looking past the immediate shock today.
While a higher interest rate backdrop generally supports bank margins, it can also put more pressure on borrowers and the stock market.
Miners add more support
The resources sector is also helping the ASX 200 hold its gains.
BHP Group Ltd (ASX: BHP) shares are up 1.69% to $55.65, while Rio Tinto Ltd (ASX: RIO) is 0.66% higher at $171.81.
Fortescue Ltd (ASX: FMG) is also in the green, rising 1.62% to $20.35.
Gold is another supportive factor today, with the precious yellow metal up 2.03% to US$4,648.63 an ounce. That helps explain some of the buying across gold and mining names, although not every resource stock is joining the move.
On the other side, Woodside Energy Group Ltd (ASX: WDS) is down 2.35% to $31.94 as oil prices weaken.
Not every major stock is rising
There are still several large names holding the index back.
CSL Ltd (ASX: CSL) is down 0.33% to $123.96, while Telstra Group Ltd (ASX: TLS) is 0.83% lower. Woolworths Group Ltd (ASX: WOW) is also weaker, falling 0.78%.
The index is having a strong day, but the buying is still concentrated in banks and a few miners.
It is still a solid gain, but the strength is not showing up evenly across the market.
