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The Australian share market maintained its upward trajectory for the fifth consecutive session on Wednesday, spurred by Wall Street’s positive trend and the anticipation of peaked US interest rates. The and All Ordinaries indices both registered a 0.5% rise, with the mining and energy sectors playing significant roles in this growth. Concurrently, the Australian dollar marked its fifth consecutive gain, reaching $64.33 cents.
In corporate news, Bank of Queensland reported a substantial slump in profit, causing a 7% drop in shares. The bank’s FY23 statutory profit after tax declined by 70%. Contrarily, Telstra (OTC:) announced plans to acquire Versent for AUD 267.5 million, a move aimed at bolstering its tech services segment, Telstra Purple. This announcement led to an increase in Telstra’s shares.
Qantas also made headlines as it announced board changes following shareholder pressure. These changes include the departure of Chairman Richard Goyder next year and the planned exit of former CEO Alan Joyce in November.
In other economic news, S&P Global Market Intelligence revised its 2023 and 2024 real US GDP growth forecasts upwards while also adjusting near-term projections for Treasury yields, corporate bond rates, mortgage rates, and the US dollar upwards. However, it decreased equity valuations.
Meanwhile, reports suggest that China is preparing for a new stimulus package potentially worth $137 billion. Insurance Australia Group confirmed strong future growth projections, leading to a boost in its shares. Biotech giant CSL (OTC:) issued a warning about looming margin headwinds but projected strong growth for fiscal 2023.
Federal Reserve officials’ diverging views on rate increases sparked market debates. Despite this, Commonwealth Bank expressed optimism for the economic outlook. Adjustments were seen in prices, and the yield on the US 10-year note dropped to 4.66%.
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