Australian stocks rallied hard for a second consecutive session on Monday, aided by strong gains in offshore markets on Friday and a continued rebound in the crude oil price.
First, the final scoreboard for Monday.
- ASX 200 5006.6000 , 90.65 , 1.84%
- All Ords 5057.1 , 87.54 , 1.76%
- AUD/USD 0.7022 , 0.0022 , 0.31%
After opening up by more than 1%, gains accelerated into the close, eventually seeing the benchmark ASX 200 index finish above the 5,000 point level for the first time since January 7.
The chart below reveals the scale of the recovery seen in recent sessions. From the low of 4803.9 struck on January 18, the index has now gained 4.22%, trimming the year-to-date decline to 5.46%.
On the back of another near 1% rise in crude oil futures, gains were led by the energy sector which rose by an impressive 3.50%.
Over the past two trading sessions the sector has now rallied by 7.46%.
Alongside energy, there were also impressive performance from financials, utilities, industrials, healthcare and consumer discretionary which finished with gains of 2.55%, 1.85%, 1.09%, 1.19% and 1.90% respectively.
Reflective of the continued improvement in investor sentiment, the All Ordinaries gold index was the only sector to finish in the red, losing 0.25% for the session.
Australian markets will be closed tomorrow for the Australia Day public holiday.
The top stories for Monday.
1. The violent crash in oil prices is creating ‘real fundamental change’ according to Goldman Sachs.
2. ANZ reckons that betting on central bank support ‘is a dangerous game for markets to be playing‘, expressing caution over the basis for the recent rally in risk assets.
3. Sydney is the second most unaffordable city in the world to buy a home, a new report has revealed. Not only that, all five major metropolitan areas in Australia surveyed — Sydney, Melbourne, Perth, Adelaide and Brisbane — were classified as being “severely unaffordable” for the 12th year in a row.
4. Japanese trade data for December missed badly to the downside. Exports and imports both contracted at annual rates not seen in years, fueling concerns over the current state of the global economy.
5. Australian business confidence fell modestly last month, largely pushing aside concerns over the global growth outlook expressed by financial markets.
6. The rumours of several high-profile Twitter executives leaving the company have been confirmed, with CEO Jack Dorsey confirming the departures through a tweet.