Australia shares close at two‑month high on Middle East optimism

[SYDNEY] Australian shares rose for a fourth straight session on Wednesday (June 17) to close at their highest in more two months, led by miners and banks after details of an interim deal to end the Middle East war lifted investor sentiment.

The benchmark S&P/ASX 200 index .AXJO ended 0.5 per cent higher at 8,966.30 points, its highest level since April 15.

Australian stocks rebounded from earlier losses as sentiment improved after key details emerged on the interim US-Iran agreement, under which Washington would lift its blockade of Iran’s ports while Teheran would restore the passage of oil tankers and other vessels through the Strait of Hormuz.

“The recent rally still has life, supported by easing geopolitical risk, lower oil prices and renewed momentum in risk appetite,” said Hebe Chen, market analyst at Vantage Markets.

“Reopening of the Strait of Hormuz should keep the near-term tone positive.”

Miners rose 1.2 per cent, as copper prices edged higher, with index heavyweight BHP Group gaining as much as 1.2 per cent, to hit a record high.

Banks gained 0.5 per cent, logging their fourth consecutive session of gains.

The country’s top lender, CBA and investment bank, Macquarie Group both gained over 1 per cent, with the latter hitting a record high.

“Confidence in commodities and banks is improving as investors look past the RBA’s hawkish pause and focus on the potential inflation relief from lower oil prices,” added Chen.

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Among data points, investors are also geared up for the first policy decision under Federal Reserve Chair Kevin Warsh, due later in the day.

Gold stocks ended 3.5 per cent higher, on the back of steady bullion prices. Gold miner Northern Star Resources jumped 2.6 per cent.

Energy stocks fell 2.3 per cent after oil prices inched lower, while tech stocks traded in the green, gaining 2 per cent.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index slipped 0.2% to 13,392.98 points. REUTERS