The Australian sharemarket has edged higher at the open, with energy stocks rising as oil prices extended their rally on the back of President Donald Trump announcing “massive” new sanctions on Russia’s crude industry.
The S&P/ASX 200 was 11.3 points, or 0.1 per cent, higher to 9044.1 at 10.56am AEDT, with eight of 11 industry sectors in the green.
Oil companies boosted Wall Street on Thursday. Credit: Bloomberg
Energy stocks are again the story of the day after Trump announced sanctions against Russian oil giants Rosneft and Lukoil in the hope of convincing Russia’s president, Vladimir Putin, to end the brutal war with Ukraine. Crude prices added around 5 per cent overnight to surge for the second-straight day. In early trade, Woodside Energy added 1.8 per cent, Ampol climbed 0.8 per cent and Santos edged up 0.1 per cent.
Among the big miners, Rio Tinto advanced 1.7 per cent, Fortescue added 0.4 per cent and BHP was flat. Gold miners lost further ground despite the safe haven rising overnight, with Newmont (down 2.4 per cent), Northern Star (down 1.8 per cent) and Evolution Mining (down 0.4 per cent) all retreating.
Financial stocks are stronger. Westpac jumped 0.8 per cent, ANZ Bank advanced 0.4 per cent, Commonwealth Bank gained 0.3 per cent and National Australia Bank was flat.
The Australian dollar was fetching US65.15¢ at 10.52am AEDT.
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On Wall Street, the S&P 500 climbed 0.6 per cent and crept back within 0.2 per cent of its all-time high set earlier this month. The Dow Jones added 144 points, or 0.3 per cent, and finished just below its own record set earlier this week, while the Nasdaq composite rose 0.9 per cent.
Companies in the oil and gas business led the way, including gains of 1.1 per cent for Exxon Mobil, 3.1 per cent for ConocoPhillips and 3.4 per cent for Diamondback Energy.
