Australia markets closed

Markets close slightly higher following banks’ announcement

Melbourne Australia - July 2, 2017: People use ATM at Southern Cross railway station Melbourne.

The benchmark ASX200 finished 0.70 per cent higher at 4,816.6 points on Friday after another volatile day of trading, while the broader All Ordinaries index closed up 0.93 per cent.

Westpac, ANZ and NAB also finished in the green while CommBank finished slightly lower after it was announced the major banks would defer all business loan payments for vulnerable customers for at least six months.

The $100 billion assistance package will apply to existing small business loans.

“Small businesses can rest assured that if they need help, they will get it. Banks are already reaching out to their customers to offer assistance and packages will start rolling out in full on Monday,” Australian Banking Association CEO Anna Bligh stated.

What happened this morning?

The ASX200 soared 3.8 per cent at the open on Friday as Australia’s four major banks prepare to announce their stimulus measures

The All Ordinaries Index also lifted at the open, up 3.71 per cent at 1013am AEDT.

The lifts come as Australia’s big four banks, NAB, ANZ, Westpac and the Commonwealth Bank gear up to share their major packages to help businesses and individuals through the economic wreckage of the coronavirus outbreak. 

Local investors are preparing for economic stimulus measures to be announced after the Reserve Bank of Australia (RBA) announced it would cut rates to 0.25 per cent in a rare emergency rate cut on Thursday afternoon.

The new rate is a record low, and the lowest the RBA has said it will go as it begins to employ unusual policy measures to turn the economy around.

The ASX200 yesterday finished 3.44 per cent lower, while the All Ordinaries was also down 3.79 per cent after weeks of volatility. 

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