Miners lead ASX higher as market absorbs budget, wages data

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The Australian sharemarket stepped up to post a sold gain following Tuesday’s federal budget, with miners, healthcare and consumer discretionary stocks leading the way.

The Australian sharemarket advanced following the federal budget on Tuesday night and the latest wages data, with miners, healthcare and consumer discretionary companies leading the way after a positive lead from Wall Street.

Shares of toll roads operator Transurban fell 1.8 per cent and engineering professional services company Worley lost 2.8 per cent. However, markets still expect the Reserve Bank to leave the cash rate on hold at 4.35 per cent until May 2025, when the central bank is forecast to deliver its first 0.25 percentage point cash rate cut.

The S&P 500 jumped 0.5 per cent. The Dow Jones Industrial Average rose 0.3 per cent, and the Nasdaq – heavily influenced by technology stocks – surged 0.8 per cent. “Inflation pressures in the US economy are still substantial and the momentum that built up over the last few years is still rolling along,” said Bill Adams, chief economist for Comerica Bank. “At the margin the Fed will see the April PPI report as another reason to slow-roll interest-rate cuts.”Bond yields edged lower, with the yield on the 10-year Treasury slipping to 4.45 per cent, from 4.49 per cent late Monday. The yield on the two-year Treasury fell to 4.82 per cent, from 4.86 per cent.

 

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