Market Wrap / retail rally

A retail rally, coupled with strong moves in the financial and gold stocks, pushed the local market higher during Wednesday’s trade.

The S&P/ASX 200 gained 0.6% to 8406.70 points.The consumer discretionary sector rallied 0.9% as inflation slowed to a three and a half year low in October. However underlying inflation remained sticky, increasing to 3.5% in October from September on an annual basis, above the RBA’s 2-3% target band. Web Travel Group was the best performer, rising 13.5% after posting a first-half underlying net profit of $52.5 million, less than two months after the demerger from Webjet.

Iron ore prices edged higher for a third straight session as stronger steel production outweighed a raft of weaker economic data in China. Shares in Fortescue gained 1.9% while BHP was up 0.2%.Elsewhere, Aussie Broadband had its best day in months, up 4.7% on a share buyback. Orthocell rose to its highest level since May 2019 after signing an agreement with Singapore-based Device Technologies Asia. Novonix plunged after completing a $44.4 million share placement offer at 60 cent per share. And shares in Pro Medicus fell 0.7% as the medical imaging company signed a $24 million, five-year contract with NYU’s Langone Health.

The Kiwi dollar rallied as the RBNZ signalled a slower pace of easing ahead, after cutting rates by 50 basis points to 4.25% as expected.

Ahead tonight, US GDP for the September quarter is released, along with durable goods orders and the Fed’s preferred measure of inflation, the October PCE Index. Tomorrow locally, RBA Governor Michele Bullock speaks in Sydney.