Australia markets closed

ASX spectacular on Wednesday, even as Australia sinks into recession

The markets are apparently not too concerned about race protests and the coronavirus. (Image: Getty)

Australian stocks had an absolutely amazing trading day, shrugging off real world concerns about a recession, race protests and the coronavirus.

The ASX200 index ended Wednesday 1.83 per cent higher, to reach 5,941.60 points. The All Ordinaries also flew, ending 1.76 per cent up to sit at 6,064.90 points.

This is despite an ominous gross domestic product announcement for the nation, racial justice demonstrations occurring both within and outside of the US, and worries about economic recovery out of the coronavirus crisis.

What happened at lunchtime?

The Australian share market is well up at lunchtime Wednesday, despite numbers coming out that showed Australia’s economy shrunk in the March quarter.

The benchmark ASX200 index was up 0.98 per cent at 12:08pm AEST to hit 5,892.20 points, while the broader All Ordinaries had soared 0.96 per cent at the same time, to reach 6,017 points.

Earlier on Wednesday, Australia’s gross domestic product was revealed to have contracted 0.3 per cent during the quarter ending March. That’s despite most of the economic impact of the coronavirus not having actualised until April.

Experts are expecting a painful 9 per cent contraction for the June quarter.

What happened this morning?

Australian shares headed up on early morning trade on Wednesday, as investors looked past the impact of race relations protests and the coronavirus pandemic.

The ASX200 index rose 0.99 per cent in the first 14 minutes of trade, while the All Ordinaries had nudged up 1 per cent at the same time.

The Australian market will on Wednesday morning nervously watch the release of the latest gross domestic product figures, which is expected to show a contraction for the quarter ending March.

A recession is technically defined as a GDP contraction in two consecutive quarters.

What happened overnight?

A rally late in the session boosted Wall St into positive territory overnight, as the market overlooked the race relations demonstrations that are gripping the United States.

"Technicals are pushing the market higher and the market's not paying attention to the potential problems that the protests could have on local economies," Spartan Capital Securities chief market economist Peter Cardillo told AAP.

The Dow Jones Industrial soared 1.05 per cent, the S&P500 rose 0.82 per cent, and the NASDAQ was up 0.59 per cent.

In response, the SPI200 futures were up 0.53 per cent at 8am AEST, forecasting the ASX would open higher on Wednesday.

with AAP

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