Wednesday, 23 July, 2014

Published July 17, 2014
Australia: Shares gain ground in broad rise as resources jump


[SYDNEY] Australian shares added 0.5 per cent on Thursday as Wall Street edged higher, while an uptick in metals prices helped support the mining space.

US stocks rose on Wednesday with the Dow Jones industrial average closing at a record high, boosted by the latest merger news and some strong corporate earnings.

The broader market was propped up by a strong resource sector. Aluminium touched its highest in 16 months, while benchmark 62 per cent grade iron ore for immediate delivery to China rose to US$98.

Global miners BHP Biliton Ltd and Rio Tinto Ltd added 1.5 per cent and 1.7 per cent, respectively. Meanwhile, gold miners jumped higher with Newcrest Mining Ltd soaring 2.2 per cent after bullion rebounded following two consecutive days of sharp losses. "As the price of iron ore steadies, the major miners have acted as the driving force in our index with Chinese growth seemingly back," said Niall King, a sales trader at CMC Markets in a note.