Australian shares are tracking a third straight week of gains despite a brutal mid-week sell-down, as investors grapple with a host of fast-moving market risks.
The S&P/ASX200 jumped 84.9 points by midday, up 0.97 per cent, to 8803.5, as the broader All Ordinaries rose 95.3 points, or 1.08 per cent, to 8935.7.
The recovery tracked a rebound on Wall Street after a volatile week defined by major sell-offs in chip stocks, shifting interest rate expectations in Australia and abroad, and ongoing pressure on energy prices.
“Wall Street is whipsawing, bond yields are swinging, currency markets are doing backflips, and commodity prices are running in multiple directions,” Capital.com senior market analyst Kyle Rodda said.
“The volatility cluster speaks of a market repositioning rapidly as it tries to digest a myriad of macroeconomic variables.”
The raw materials sector rebounded 2.6 per cent after tumbling almost seven per cent since Tuesday, with BHP and Rio Tinto leading the charge to trade at $59.59 and $155.04 respectively.
Both iron ore futures and copper prices have been hammered this week, after a economic stimulus plan from China disappointed investors and as competition concerns complicated the AI trade.
Gold stocks also bounced, the sub-index gaining three per cent as the precious metal clawed its way back to $US4154 ($A6001) per ounce.
Battery minerals and rare earths producers also recovered fragments of the week’s losses.
Energy stocks inched higher as Brent crude held onto its recent gains to trade $US105.50 a barrel, as traders continued to brace for fresh US strikes against Iran, despite US presidential assurances to hold off until after the midterm elections.
Australia’s energy sector is up 1.8 per cent for the week.
Financials were trading flat on Friday after rebounding for most of the week as dip-buyers picked up recently beaten-down banks.
The local tech sector outperformed with a 4.5 per cent recovery after plummeting almost 20 per cent since mid-August.
Consumer-facing stocks were mixed, with cyclicals up 1.2 per cent as risk sentiment improved, while the traditionally defensive staples segment handed back a small chunk of the week’s nearly four per cent rally.
In company news, Zip Co’s US business boss Joe Heck has resigned, with US chief technology and operations officer to step up as interim chief executive and president.
The buy-now pay later player also announced plans to consolidate its ordinary share volume at a five-to-one basis in a move the board hopes will broaden the company’s appeal to investors.
PLS, formerly Pilbara Minerals, will push ahead with its P2000 Project at its Pilgangoora operation in Western Australia after locking in its final investment decision.
The Australian dollar is buying 69.21 US cents, down from 69.51 US cents on Thursday at 5pm.
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