Market Wrap / buying the dip

Dip buying was the order of the day during Tuesday's session, as the Australian sharemarket bounced back from yesterday's dramatic plunge. 

Local shares grew steadily throughout the day, with the S&P/ASX200 finishing upward of 2.3% to 7510, a significant recovery from Monday’s 4.2% drop. 

All sectors finished in green for the day, with IT, energy and consumer discretionary leading the way.

Santos was a notable leader amongst the energy sector rally, adding 5.4%, while BHP contradicted a weaker iron ore price, rising 2.3% in the mining sector. Boss Energy was the overall market leader, rising 10.6% after flagging positive developments from its investment in the Alta Mesa uranium project in Texas. 

The Australian dollar edged back above US60c during the session, but had hit a near five-year low hit after the US-China threat amplified overnight. As such, investors were hesitant of the banking sector as a whole, yet the Commonwealth Bank experienced a climb of 2.8%.Star Entertainment Group received a life-line of $300 million from American casino giant, Bally’s. The troubled casino will receive the financing through a multi-tranche convertible note and subordinated debt instrument, with $100 million anticipated prior to April 9th. The remaining $200 million will be paid after a shareholder vote.  

Tonight, the US will release the NFIB Small Business Optimism Index for the month, it is tipped to fall from 100.7 to 100.