Australian Market Slightly Higher

The Australian stock market is slightly higher in choppy trading on Thursday, extending the winning streak of the previous six sessions, with the benchmark S&P/ASX 200 a tad below the 7,600 level near all-time highs, as traders digested some upbeat earnings results. Traders remain spooked amid concerns about the worsening domestic coronavirus situation, particularly in New South Wales.

NSW has reported 345 new local cases of COVID-19 on Wednesday, with more regional areas coming under tougher restrictions. Victoria recorded 21 locally acquired cases, with active cases now totalling 137 across the state.

The benchmark S&P/ASX 200 Index is gaining 6.90 points or 0.09 percent to 7,591.20, after touching a high of 7,608.60 and a low of 7,583.50 earlier. The broader All Ordinaries Index is up 9.30 points or 0.12 percent to 7,863.90. Australian markets ended modestly higher on Wednesday.

Among major miners, BHP Group is edging down 0.1 percent, Mineral Resources is losing almost 2 percent and Rio Tinto is down almost 1 percent, while Fortescue Metals is edging up 0.5 percent. OZ Minerals is gaining almost 1 percent.

Oil stocks are mixed despite crude oil prices climbing overnight. Oil Search is gaining more than 1 percent and Santos is edging up 0.3 percent, while Woodside Petroleum and Beach Energy are adding almost 1 percent each. Origin Energy is losing almost 1 percent.

Among the big four banks, Commonwealth Bank is edging down 0.3 percent, while ANZ Banking, National Australia Bank and Westpac are edging up 0.3 percent each.

In the tech space, WiseTech Global is gaining almost 1 percent, while Xero is losing more than 2 percent, Afterpay is declining more than 1 percent and Appen is down more than 3 percent.

Gold miners are mixed. Evolution Mining and Resolute Mining are edging up 0.3 percent, while Newcrest Mining is gaining almost 1 percent and Northern Star Resources is up more than 1 percent. Gold Road Resources is edging down 0.4 percent.

Shares in Telstra are up almost 3 percent after the telecom giant announced a $1.4 billion share buyback scheme and held its 16 cent dividend steady after a rise in profits.

AGL sunk to a $2.06 billion loss as the rapid rise of renewable energy continues to rock the market and pummel the company’s profits. The company also trimmed its final dividend to 34 cents. The energy company is down more than 4 percent.

Shares in Downer EDI are gaining more than 4 percent after the engineering group bounced back to a full-year profit and re-introduced its final dividend for the year.

Shares in Graincorp are surging almost 13 percent after it upgraded its earnings forecasts for the full year for the second time since May, due to booming crops and exports despite China’s barley ban last year.

Shares in QBE are surging more than 7 percent after the insurer boosted its dividend after bouncing back to a first half net profit as investment returns and underwriting losses improved.

Shares in Myer are soaring almost 10 percent after the department store said it expects to post a second-half profit for the first time since 2017.

In the currency market, the Aussie dollar is trading at $0.737 on Thursday.

On Wall Street, stocks once again moved in opposite directions during trading on Wednesday, closing mixed for the fourth consecutive session. While the Dow and the S&P 500 reached new record closing highs, the tech-heavy Nasdaq finished the day modestly lower.

The Dow climbed 220.30 points or 0.6 percent to 35,484.97 and the S&P 500 rose 10.95 points or 0.3 percent to 4,447.70. Meanwhile, the Nasdaq rebounded from its worst levels of the day but still closed down 22.95 points or 0.2 percent at 14,765.14.

Meanwhile, the major European markets moved to the upside on the day. While the U.K.’s FTSE 100 Index advanced by 0.8 percent, the French CAC 40 Index and the German DAX Index rose by 0.6 percent and 0.4 percent, respectively.

Crude oil futures settled higher on Wednesday, recovering well after an early setback, after the Biden administration said it would not ask U.S. oil producers to hike output. West Texas Intermediate Crude oil futures for September ended up $0.96 or 1.4 percent at $69.25 a barrel.

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