AU Evening Wrap: Australia Shares Rise 0.8% as Bank Stocks Gain
Market Performance
Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.8% higher at 7761.0, building on its recent momentum amid strength in shares of banks. The benchmark index, which was coming off a 1.0% gain at the end of last week, spent the whole session in the black.
Nine of its eleven sectors finished higher, with the heavyweight financials' 1.5% rise at the forefront. Major banks $ANZ Group Holdings Ltd (ANZ.AU)$, $CommBank (CBA.AU)$, $National Australia Bank Ltd (NAB.AU)$ and $Westpac Banking Corp (WBC.AU)$ added between 1.2% and 2.5% after economists said an impending 3.75% increase to the country's minimum wage was unlikely to add to pressure for interest-rate hikes. The property trusts sector rose 1.5%, while materials edged 0.4% higher.
Top News
Australian Manufacturing PMI Shows Signs of Recovery Amid Price Pressures
The latest seasonally adjusted Judo Bank Australia manufacturing purchasing managers index suggests that the manufacturing sector in Australia is showing signs of recovery. The PMI rose slightly to 49.7 in May, up from 49.6 in April, indicating that manufacturing activity in Australia is stabilizing after a period of decline.
Firms in the sector are reporting ongoing demand for labor, and there are signs of improvement in new orders. The sector also appears to be more optimistic about hiring, which is a positive sign for the labor market. However, price pressures remain a concern.
Oil Prices Volatile as OPEC+ Plans to Gradually Increase Production
Oil prices have been volatile after OPEC+ announced its plan to gradually increase production as early as October, despite concerns over the demand outlook and ample supply from non-OPEC+ members. The Saudi Energy Ministry stated that production cuts will continue in full during the third quarter and then be gradually phased out over the following 12 months. Brent crude dipped below $81 per barrel, while West Texas Intermediate traded below $77 per barrel.
Source: Dow Jones Newswires, AFR, ASX
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