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Australian Market Rises

The Australian stock market is rising on Tuesday following the strong gains overnight on Wall Street as investor sentiment was bolstered by upbeat U.S. housing data and hopes of more stimulus measures by the Federal Reserve, which offset worries about the sharp spikes in new coronavirus cases in the U.S. and other parts of the world.

The benchmark S&P/ASX 200 Index is advancing 102.70 points or 1.77 percent to 5,917.70, after rising to a high of 5,925.70 earlier. The broader All Ordinaries Index is adding 103.60 points or 1.75 percent to 6,019.20. Australian stocks closed notably lower on Monday.

Oil stocks are gaining after crude oil prices rose more than 3 percent overnight. Woodside Petroleum is rising almost 3 percent, while Santos and Oil Search are higher by more than 2 percent each.

In the banking sector, Westpac, National Australia Bank and ANZ Banking are higher in a range of 2 percent to 2.6 percent. Commonwealth Bank is advancing more than 1 percent.

Among the major miners, Rio Tinto is rising 0.6 percent and BHP is adding 0.5 percent, while Fortescue Metals is edging down 0.1 percent.

Bucking the trend, gold miners are lower after gold prices ended almost unchanged overnight. Newcrest Mining is declining more than 1 percent and Evolution Mining is down 0.4 percent.

SCentre Group said customer visits at its Westfield shopping centres in Australia are at 86 percent of the level in the year-ago period and more stores will reopen next month following the relaxation in coronavirus restrictions. Shares of SCentre Group are gaining almost 4 percent.

On the economic front, Australia will see May figures for private sector credit today.

In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday. The local unit was quoted at $0.6873, compared to $0.6884 on Monday.

On Wall Street, stocks ended on a buoyant note on Monday despite several states in the country reporting sharp spikes in new coronavirus cases over the weekend. Investors surprisingly shrugged off the report about the spread of the coronavirus, and kept picking up stocks, betting on hopes the central bank will come with more stimulus sometime in the near futures. Boeing's shares soared more than 14 percent after the company got permission to test flights using the 737 Max.

The Dow ended up 580.25 points or 2.3 percent at 15595.80, the best closing level in nearly four weeks. The S&P 500 climbed 1.5 percent to 3,053.24 and the Nasdaq advanced 1.2 percent to 9,874.15.

The major European markets also closed higher on Monday. The U.K.'s FTSE 100 climbed 1.08 percent, Germany's DAX gained 1.18 percent and France's CAC 40 advanced 0.73 percent.

Crude oil prices climbed higher on Monday despite concerns about the outlook for energy demand amid sharp spikes in new cases of coronavirus in the U.S. and several other parts across the globe. WTI crude for August rose $1.21 or about 3.1 percent at $39.70 a barrel.

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