“Certain sections of the analytical community are calling for a rate cut in November after Westpac increased its variable home rate and this should be a positive driver for the high yielding stocks”, he said.
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The move, created to help meet tougher capital adequacy rules while maintaining net interest margins, was also interpreted as a sign that overheated residential property markets in Sydney and Melbourne were cooling.
The Commonwealth Bank of Australia is up 1.13 percent, the National Australia Bank edged a 0.03 percent gain however ANZ fell 0.31 percent while Westpac remained in a trading halt.
Telstra was up 3.5 cents, or 3.5 per cent, at $5.475.
After a stunning prior week, resources stocks had led the market lower for three straight days from Monday, but sentiment turned again on Thursday, which pulled the bourse higher.
The broader All Ordinaries index was down 4.2 points, or 0.08 per cent, at 5230.4.
Oil Search also dropped, by 2.9 per cent to $7.14.
Government 10-year yields fell 5.6 points to 2.606 per cent and two years dropped 4.8 points to 1.803 per cent. U.S. 10years dropped 4 points to 2.04 per cent last night as oil prices fell and credit markets jitters flared.
The benchmark S&P/ASX200 index was up 32.7 points, or 0.63 per cent, at 5,230.0 points.
Peak Asset Manager executive director Niv Dagan said investors had this week taken a reality check on both the United States and Chinese economies after last week’s upbeat mood.
Wall Street stocks have finished solidly higher, following global equity markets upward on rising confidence the US Federal Reserve will delay hiking interest rates.
The surprise drop in the number of employed people sparked a dip in the Australian dollar, pushing the currency down a third of a USA cent to the low US73c level.
“Those weaker trade numbers had a big impact on commodities overnight”.
The stock opened at $1.96 and closed at $1.83.
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Domino’s Pizza, however, was the outperformer of the day, climbing 6.9 per cent, to $42.52, after announcing it was scouting the world for aquisitions after agreeing the $55 million purchase of France’s Pizza Sprint.
