ASX: Share market closes higher on Wall St, stronger iron ore price

The local share market has edged higher on the back of an improvement in the iron ore price and after Wall Street touched fresh record highs overnight.

Markets at 5.21pm (AEST)

  • ASX 200 +0.7 pc to 5,389, All Ordinaries +0.7 pc to 5,470
  • Major gains: Blackmores +7.4 pc to $146.00, Fortescue Metals +5.5 pc to $4.40 Nine Entertainment +4.6 pc to $1.15
  • Major losses: Car Sales -2.3 pc to $12.12, JB Hi-Fi -1.8 pc to $23.50, South32 -1.8 pc to $1.92
  • Euro STOXX 600 futures flat at 334.8, S&P 500 futures flat at 2,145, German DAX -0.2 pc at 9,943
  • AUD: 75.9 US cents, 57.2 British pence, 79.2 Japanese yen, 68.7 euro cents, $NZ1.047

Iron ore supported the market as prices jumped to a two-month high of $US58.80 a tonne.

Major miners BHP Billiton jumped 3.3 per cent to two-month highs of $20.85, while rival Rio Tinto climbed 2.8 per cent to near two-half-month highs of $50.78.

Among oil companies, Santos added 2.1 per cent to $4.80, while Woodside Petroleum gained 0.9 per cent to $27.04 as the oil price gained to $US46.77 a barrel.

The benchmark ASX 200 Index is hovering near one-and-a-half-month highs, supported by easing uncertainty over the UK's decision to leave the European Union.

Shares have been volatile in the past month, with investors selling out of global markets after the Brexit vote before piling back in after the political dust settled.

Elsewhere the monthly Westpac-Melbourne Institute monthly consumer sentiment index took a hit from the Brexit vote and a very close Australian election, but not as much as analysts feared.

"The generational low interest rates will be supportive of further borrowing — but there is no guarantee," wrote economist at CommSec Savanth Sebastian in a note to clients.

"While Reserve Bank policymakers would be hoping that the latest rate cut spurs another round of activity, they would be well aware that borrowers are cautious about taking on more debt."

Retailers had a mixed session, with Wesfarmers dipping 0.8 per cent, while Woolworths gained 0.7 per cent.

The collapsed electronics firm Dick Smith owes more than $260 million to creditors, but administrators McGrath Nicol said creditors are unlikely to see any money.

Dick Smith's bankers will see only a fraction of what they're owed, while Dick Smith gift card holders are also unlikely to recover their money.

Source: ABC News

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