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Australian stocks ride Wall Street's tech rally led by Microsoft

EditorPollock Mondal
Published 11/21/2023, 02:14 PM
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The Australian stock market opened higher today, riding the wave of a robust rally in US technology shares. The S&P/ASX 200 index climbed by 0.3% to 7,077.8, driven by gains in the materials and energy sectors, as well as a stronger Australian dollar, which reached US65.6¢ against a softening US dollar.

Microsoft Corporation (NASDAQ:MSFT) was at the forefront of the rally, with its shares hitting an all-time high of $US378.87 before closing at $US377.44. The surge came after the company announced the hiring of Sam Altman, the former CEO of OpenAI, to lead a new AI project. This news energized investors and contributed to Microsoft's stock reaching a new peak of $377.40.

Energy companies such as Ampol Ltd (ASX:ALD), Santos Ltd (ASX:STO), and Beach Energy (OTC:BCHEY) (ASX:BPT) saw their shares advance as crude oil prices exceeded $US77 per barrel, amid expectations of policy changes from OPEC+.

The Reserve Bank of Australia's (RBA) board meeting minutes are expected to be released at 11:30 am AEDT, providing insights into the central bank's latest rate decision and economic assessments.

In other corporate news, Technology One Ltd reported higher profits but experienced a decline in share price. Coles Group (OTC:CLEGF) edged up as it announced plans for a bond issue worth $1.25 billion. Brickworks Ltd announced an enhanced dividend but also faced a drop in share price.

Investors are also paying close attention to several annual general meetings (AGMs) taking place today, including those of AGL Energy (OTC:AGLXY) and Fortescue Metals Group (OTC:FSUGY).

The positive sentiment was further bolstered by a successful $16 billion US government debt auction, which lifted investor confidence globally.

In commodities, the Australian dollar hit a three-month high at 66 cents against the USD; Bitcoin crossed the $57k mark; copper reached $3.80/lb; uranium soared to a decade-and-a-half peak; iron ore was up at $134.50/tonne; gold was valued at $1977; and natural gas declined to $2.88.

Meanwhile, RBA Governor Michele Bullock is set to engage in the ASIC Annual Forum in Melbourne while RBA's acting head Carl Schwartz presents at the Australian Securitisation Forum in Sydney, drawing attention from market participants eager for insights into the Australian economy's trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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