ASX hovers just shy of record highs

Australia’s sharemarket has closed at about 6850 points for three days in a row this week following its 100-point rally on Monday. This mirrors moves on Wall Street, where indices barely moved after earlier setting new records in the wake of Boris Johnson’s UK election victory and the announcement of a phase one US-China trade deal.

“The price action suggests that the interim-trade-deal induced rally may be taking a well-earned rest for now after the impressive climb in stocks of the last few days,” said senior market analyst Asia-Pacific for OANDA, Jeffrey Halley.

Northern Star shares closed 3.3 per cent higher after a capital raising to buy a 50 per cent stake in the Kalgoorlie Super Pit.

“With low-to-no interest rates now the norm across the globe, that state of affairs in global equity markets is unlikely to last. Valuations may appear nonsensical to many, but the world’s savings glut needs to go somewhere. With trade concerns mollified, for now, dividend yields that are higher than [investors] would get in the bank, mean that the great “melt-up” likely continues well into 2020.”

On Wednesday, the S&P/ASX 200 added just 4 points to close at 6851 points, trading between 6833 points and 6863 points during the day.


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