Australia’s sharemarket enjoyed a strong session on Monday, closing the day at its highest level in three months. The S&P/ASX 200 now sits just 73 points below its all-time closing high of 6845 points, which it tapped on July 30.
Monday’s bullish session was underpinned by global health and blood products company CSL, which gained 3.5 per cent to close at a record high of $270.56. This is partially due to a weakening Australian dollar, which aids CSL’s revenue when it’s converted from US dollars.
Despite optimism on US-China trade negotiations, the Australian dollar remained at US68.55¢, pressured by a lift in US bond yields and down 0.6 per cent against the greenback from where it closed last Thursday. Australian traders also got a confidence boost from Wall Street’s performance last week, according to senior market analyst for Asia Pacific at OANDA, Jeffrey Halley.
“All three major Wall Street indices closed at or near record highs on Friday, despite President Trump stating that no trade deal has been done yet, that he hadn’t agreed to roll back tariffs, and China needed a deal more than the US,” Mr Halley said.