The ASX200 is holding above 5,900 in afternoon trade, a level it hasn’t reached since closing at 5,950.36 on May 2nd this year.
The index fell by as much as 0.4% after the opening bell, before rallying back and a short time ago it was up 0.3% for the session:
Today’s buoyant session follows a weak lead from global markets, as US stocks rallied back from a slow start to close flat while stocks in the UK and Europe both fell.
Each of the big four banks are higher as the parliamentary enquiry into the banking sector continues in Canberra.
The ASX200 materials index is holding its ground, with the big miners up slightly after BHP and Rio both fell by more than 2% yesterday. A short time ago, Fortescue Metals was up by 2.47%.
The ASX200 energy index is the only major sector lower after oil prices dipped overnight. Consumer staples are pushing higher, led by Metcash which is up more than 3%.
Consumer discretionary stocks are also in demand, with notable moves including Harvey Norman, up 0.76%, and Flight Centre, which a short time ago was more than 3% higher.
The local index is on track to close up around 1.8% for the week, following similar gains last week that have seen Australian stocks break higher from their recent trading range amid a positive global growth backdrop.
Despite the recent move higher, Goldman Sachs said its technical analysis suggests the ASX200 is still at risk of a sharp fall unless it breaks above the 6,000 mark.
Today’s price action comes amid a sharp move higher in US stock futures and the US dollar, after a Senate resolution passed 51-49 that paves the way for the Trump administration’s tax reform agenda.