The local share market has rallied after strong US economic data released overnight dispelled fears that the world’s leading economy was slipping into recession.
At noon AEST on Friday, the benchmark S&P/ASX200 index was up 106.4 points, or 1.35 per cent, to 7,971.9, while the broader All Ordinaries had gained 108.1 points, or 1.34 per cent, to 8,191.9.
The market was set to close higher for a sixth straight day and enjoy its best weekly gains since December.
With a few hours of trading left, the market was up 2.5 per cent since last Friday’s close, having clawed back all of its losses from its sharp 3.7 per cent plunge a fortnight ago.
The rally came after the US Census Bureau reported overnight that retail sales increased one per cent last month, far better than the 0.3 per cent rise that economists had expected. The number of Americans making new unemployment claims also fell.
Capital.com analyst Kyle Rodda said that the readouts made the July jobs report that led to the August 5 selloff “look like a relatively minor growth scare,” although final confirmation of that won’t come until the August jobs report is released in early September.
Every sector was in the green at midday, with the materials sector the biggest gainer, up 2.4 per cent after a lacklustre recent stretch.
Fortescue had climbed 4.0 per cent, BHP was up 2.4 per cent and Rio Tinto had grown 2.5 per cent.
All of the big four banks were higher, with CBA up 1.9 per cent, NAB climbing 1.6 per cent, ANZ growing 1.4 per cent and Westpac adding 0.3 per cent.
Insurance companies were having a good day, with IAG rising 2.3 per cent, Suncorp up 1.7 per cent and QBE growing 1.5 per cent.
Fintech Zip Co had climbed 10.1 per cent to a two-year high of $2.125, while AI dataset company Appen was up 19.3 per cent to a 10-month high of $1.08.
The Australian dollar was buying 66.25 US cents, from 66.21 US cents at Thursday’s ASX close.