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Australian Market Advances

The Australian stock market is advancing on Tuesday following sharp losses in the previous session and despite the negative cues overnight from Wall Street. Investor sentiment received a boost after the U.S. Federal Reserve announced extensive new measures, including an unlimited expansion of its asset purchases, to support the U.S. economy during the coronavirus pandemic.

The benchmark S&P/ASX 200 Index is rising 109.30 points or 2.40 percent to 4,655.30, after touching a high of 4,667.60 earlier. The broader All Ordinaries Index is adding 108.30 points or 2.37 percent to 4,672.40. Australian shares tumbled to near eight-year lows on Monday.

Among the big four banks, Commonwealth Bank is higher by more than 3 percent, while ANZ Banking and Westpac are adding more than 2 percent each. National Australia Bank is advancing almost 2 percent.

In the oil space, Santos is gaining 7 percent, Oil Search is gaining almost 4 percent and Woodside Petroleum is higher by almost 2 percent after crude oil prices rose more than 3 percent overnight.

Gold miners are sharply higher after safe-haven gold prices skyrocketed overnight. Newcrest Mining is higher by 7 percent and Evolution Mining is rising more than 6 percent.

Meanwhile, the major miners are mostly lower. BHP is rising more than 4 percent, while Fortescue Metals and Rio Tinto are declining almost 1 percent each.

Woolworths Group said it cannot estimate the impact of COVID-19 on its full-year financial results due to the venue closures and changes to shopping behavior at its supermarkets. The company also said it is postponing the separation and spin-off of its Endeavour liquor and hotels business until 2021. The supermarket giant's shares are lower by almost 2 percent.

Seven West Media has withdrawn its full-year earnings guidance due to the postponing of events like the Olympics and AFL competition as well as falling advertising market activity. However, the media company's shares are climbing more than 9 percent.

In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local unit was quoted at $0.5856, up from $0.5801 on Monday.

On Wall Street, stocks closed notably lower on Monday as a massive fiscal stimulus bill once again failed to clear a procedural hurdle in the Senate. In a largely party-line vote, Senators voted 49 to 46 in favor of the procedural motion, falling short of the 60 votes needed to advance the bill. The lack of progress on Capitol Hill partly offset the positive sentiment generated by the Federal Reserve's announcement of extensive new measures, including an unlimited expansion of its asset purchases, to support the economy during the coronavirus pandemic.

While the Nasdaq fell 18.84 points or 0.3 percent to 6,860.67, the Dow plunged 582.05 points or 3 percent to 18,591.93 and the S&P 500 plummeted 67.52 points or 2.9 percent to 2,237.40.

The major European markets also moved to the downside on Monday. While the German DAX Index slumped by 2.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index plummeted by 3.3 percent and 3.8 percent, respectively.

Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. WTI crude for May ended up $0.73 or about 3.2 percent at $23.36 a barrel.

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