The local share market has started June on a strong note, with energy leading the way after the OPEC+ oil cartel agreed to extend production cuts well into 2025.
At lunchtime AEST on Monday the benchmark S&P/ASX200 index was up 55.7 points, or 0.72 per cent, to 7,757.4, while the broader All Ordinaries had gained 52.4 points, or 0.66 per cent, at 8,023.8.
After the ASX closed on Friday, the US personal consumption index – the Federal Reserve’s preferred metric of inflation – came in slightly softer than expected, which traders saw as increasing the odds of a US rate cut in mid-September.
Over the weekend the OPEC+ members met in Saudi Arabia and agreed to extend its deep oil output cuts until the end of 2025 in a bid to shore up the market amid tepid demand growth.
Domestically the Fair Work Commission on Monday announced that all minimum wage awards would increase by 3.75 per cent from July 1, the midpoint of the 3.5 per cent to 4 per cent increase that had been expected.
RBC Capital Markets chief economist Su-Lin Ong said there had been some trepidation in markets with unions seeking a five per cent increase and industry groups arguing for around half that, but the outcome was fair and prudent.
At lunchtime seven of the ASX’s 11 sectors were higher, tech and health care were down and consumer discretionaries and telecommunications were basically flat.
Energy was the biggest mover, up 1.4 per cent as Brent crude rose half a dollar to $US81.50 a barrel on the back of the OPEC+ meeting.
Woodside was up 1.4 per cent, Santos had gained 1.3 per cent and Ampol had added 1.1 per cent, with coalminers and uranium companies also doing well. Whitehaven had added 2.7 per cent and Deep Yellow had grown 2.6 per cent.
In the heavyweight mining sector, BHP was up 1.2 per cent, Fortescue had advanced 0.6 per cent and Rio Tinto hadded 0.3 per cent.
Goldminers were mostly down as the precious metal changed hands at $US2,327 an ounce. Evolution had fallen 0.6 per cent and Red5 had dipped 2.8 per cent.
All of the big four banks were higher, with ANZ and NAB up 1.1 per cent, Westpac adding 1.7 per cent and CBA climbing 0.9 per cent.
In the consumer discretionary sector, Lovisa has plunged 10.2 per cent to $30.45 after the fast-fashion retailer gave an update on its CEO succession plans.
Smiggles boss John Cheston will take over as CEO in a year’s time, replacing Victor Herrero who joined the company in December 2021 and has been under fire from shareholders over his $30 million salary.
Mr Cheston will make a base salary of $2.35 million and could earn up to another $4.7 million in performance bonuses.
The Australian dollar was buying 66.54 US cents, from 66.40 US cents at Friday’s ASX close.