Australian shares rise to 8-month highs after rising oil prices
Australian shares rose to their highest in nearly eight months, after commodity and oil prices jumped higher
Australian shares rose to levels unseen in eight months on Tuesday, lifted by rising commodity prices and supply concerns.
Oil prices jumped to their highest level in 2019 so far, after the US said it would eliminate all waivers that allowed Iran’s eight biggest buyers to continue purchasing limited volumes without facing US sanctions. It comes amid Iran’s already tightened US sanctions.
Crude oil jumped almost 3% on Monday, while International benchmar Brent Crude jumped 2.9% at $74.04 a barrel on Monday. WTI Crude crude jumped 2.7% to $65.70 and US crude futures last traded at $65.78 per barrel.
The S&P/1555-JP index reached the 6,300 level on Tuesday at time of writing, rising 0.7%.
Energy stocks added more than 2%, with Beach Energy up 4.7% and Santos up 3.2% marking the biggest gains.
Australia's main gold index dropped 1.9 % a top gold producer Newcrest Mining was down more than 2%.
Fortescue Metals Group Ltd rose a further 2.8%, following a jump the company’s stock last week. Its rivals BHP group and Rio Tinto were up 0.6% and 1.2%, respectively.
Australia’s number two bank,Westpac Banking Corp was up 0.8%, followed by another top Australian bank Australia and New Zealand Banking Group also up 0.8% respectively.
New Zealand's benchmark S&P/NZX 50 index rose to a record high of 10,036 points. It stood 0.6% higher at time of writing.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets