The Australian market is trading firm on Thursday with investors tracking the positive close on Wall Street and indulging in some hectic buying across the board. Despite the Federal Reserve acknowledging that the U.S. economic recovery was slowing, stocks rallied on Wall Street, setting up a strong base for the Asian markets this morning.
Financial, consumer discretionary, mining and energy stocks are mostly trading higher. Information technology, healthcare and industrial stocks are also trading firm.
The benchmark S&P/ASX 200 index is up 51.8 points or 1.1% at 4,589. The broader All Ordinaries index is trading at 4,631, up 52.7 points or 1.2% over its previous close.
On Wednesday, the S&P/ASX 200 index ended down 36 points or 0.8% at 4,537.2, and the All Ordinaries index closed lower by 34.7 points or 0.8% at 4,578.3.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia and Westpac are up 0.4%-0.7%, and National Australia Bank is up as much as 2.7%. Bank of Queensland is up 0.8%, while Bendigo & Adelaide Bank is down with a marginal loss.
Among top miners, BHP Billiton is up 1.6%, Rio Tinto is gaining about 1.7% and Fortescue Metals is up with a gain of 2.7%, while Newcrest Mining is up 0.7% over its previous closing price.
In the energy space, Origin Energy is gaining about 2.7%, Oil Search is up 1.3% and Woodside Petroleum is trading 1.2% higher.
Santos Ltd shares are under a trading halt as the company enters the final stages of the sell-down of its stake in a liquefied gas project in Queensland. The A$7.7 billion Gladstone liquefied natural gas project in Queensland is a joint-venture with Malaysia's Petronas, which has agreed to buy some of the gas from the project.
In the currency market, the Australian dollar opened higher on the back of a solid rise of stocks on Wall Street. In early trades, the Aussie was quoting at US$0.9179-US$0.9183, up from Wednesday's close of US$0.9158-US$0.9161. The Australian dollar is currently trading at 0.9224 to the U.S. dollar.
On Wall Street, stocks moved higher on Wednesday amid some relief buying following news of continued albeit slower U.S. economic recovery as seen by the Federal Reserve and solid demand for Portugal's bond offerings.
The major averages saw considerable volatility in late-session dealings but still managed to close on the upside. The Dow gained 46.3 points or 0.4% to end at 10,387, the Nasdaq advanced by about 20 points or 0.9% to 2,228.9 and the S&P 500 ended up 7 points or 0.6% at 1,098.9.
Major European markets saw solid gains on Wednesday. The French CAC 40 index and the German DAX index gained 0.9% and 0.8%, respectively, while the U.K.'s FTSE 100 index ended 0.4% up.
Crude oil prices surged higher on Wednesday, but gains were tempered after the Federal Reserve acknowledged signs of deceleration in the pace of U.S. economic recovery. Light, sweet crude for October delivery settled up US$0.58 at US$74.67 a barrel on the New York Mercantile Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.