Australia markets closed

ASX up again Wednesday, aroused by potential stimulus

Australian share investors are excited Wednesday morning. (Image: Getty)

The Australian share market finished trading higher on Wednesday.

The ASX200 index ended the trading day 0.83 per cent up, reaching 5,991.80 points.

The All Ordinaries jumped 0.84 per cent on market close, to rest at 6,109.20.

Both indices dipped over and under break-even throughout the day, despite energy stocks dragging the market down.

What happened at lunchtime?

Australian stocks are flat at lunchtime Wednesday, calming down after a buoyant start in the morning.

The benchmark ASX200 index is up 0.034 per cent at 12:20pm to reach 5,944.30 points.

The broader All Ordinaries is doing slightly better with a 0.15 per cent gain at the same point in time to sit at 6,067.20 points.

Earlier in the morning, the healthcare sector led the market into positive territory.

What happened this morning?

Australian shares have climbed up Wednesday morning, after optimism ruled Wall Street overnight.

The ASX200 index rose 0.24 per cent in the first 21 minutes of trade to hit 5,956.60 points, while the All Ordinaries jumped 0.25 per cent in the same period to reach 6,073.20.

The gains come after the ASX200 enjoyed a massive 3.89 per cent jump on Tuesday, in its best day of trading in 10 weeks.

What happened overnight?

Wall Street was in a good mood overnight, excited at the thought of more government stimulus and the release of better-than-expected May retail data.

All three major indices – the S&P500 (up 1.9 per cent), Dow Jones Industrial (up 2.04 per cent) and the NASDAQ (up 1.75 per cent) – enjoyed their third consecutive positive day. 

"While COVID is in most peoples' minds, in the stock market's view it is all about reopening and the strong data suggest the recovery is happening and faster than most expected," LPL Financial senior market strategist Ryan Detrick told AAP.

"The retail sales numbers is the story that's driving markets higher… But the smell of stimulus in the air is adding to today's gains for sure."

SPI200 futures responded accordingly, gaining 0.49 per cent by 8am AEST, forecasting that Australian markets would start Wednesday higher.

with AAP

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