ASX closes in the green, markets boosted by mining and energy stocks
The Australian share market continued its gains on Friday, closing higher with investors piling into mining and technology stocks.
The benchmark ASX 200 closed up 0.8 on Friday to 7,320. The broader All Ordinaries also gained around 0.8 per cent to 7,617. Both indices crossed above their 125-day moving average.
Mining and technology were the best performing sectors on the ASX.
Top stocks were Chalice Mining (+7.7pc), Magellan Financial Group (+5.7pc), Hub24 (+5.5pc), Deterra Royalties (+4.1pc) and Rio Tinto (+4pc).
BHP gained around 3 per cent and Fortescue Metals gained 2.6 per cent.
The worst-performing stocks were EML Payments (-14.3pc) after regulatory warnings related to its Irish business, Clinuvel Pharmaceuticals (-4.9pc), Whitehaven Coal (-3.6pc), Star Entertainment Group (-2.7pc), and Domino's Pizza Entertainment (-2.4pc).
Woolworths shares gained 0.6 per cent, despite news that the company had provisionally settled a staff underpayment class action for $50 million.
At 4:30pm AEST, the Australian dollar fell 0.2 per cent to 72.98 US cents.
Iron ore rose 0.3 per cent to $US117.02 a tonne.
Spot gold was down 0.1 per cent to $US1,757 an ounce.
Oil prices continued to rise with Brent crude up 1.2 per cent at $US82.99 a barrel while West Texas crude oil rose 1.43 per cent to $US79.43 a barrel.
US markets rally on news of debt ceiling deal
On Wall Street, the S&P 500 rose 1.2 per cent, the Dow Jones Industrial Average also gained 1.2 per cent, while the technology-focused Nasdaq Composite jumped 1.5 per cent.
Materials led the way, climbing 2.1 per cent, while consumer discretionary and health care also were among the top performers.
Car companies Ford and General Motors helped boost the markets, gaining around 4.7 per cent.
It was also a positive day for tech stocks with Twitter closing 4.3 per cent higher, Penn National Gaming climbing 4.8 per cent while Apple gained 1.1 per cent, Amazon 1.5 per cent and Microsoft 0.8 per cent.
Levi Strauss & Co shares jumped more than 8 per cent after the jeans maker beat third-quarter revenue and profit estimates.
The market rise came after the US Senate took a step towards passing a $US480 billion ($656 billion) increase in Treasury Department borrowing authority.
Democratic Senate Majority Leader Chuck Schumer said politicians had reached an agreement on a short-term debt ceiling increase, which he hoped would be passed this week.
The deal would extend the debt ceiling through to early December.
Uncertainty over the negotiations has been weighing on the minds of investors.
The US government borrows more than 20 cents of every dollar it spends. Unless Congress gives the US Treasury authority to borrow more money, the borrowing would stop and they would not be able to pay their bills.
"Today's [market] is driven by a slight move in Washington towards rationality about being able to pay their bills, write some cheques," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
In Europe, the pan-European STOXX 600 index ended the day +1.6pc higher to 458,57, along with Germany’s DAX +1.8pc to 15,250, and Britain's FTSE +1.1pc to 7,078.