CAPITAL MARKETS

Relieved investors push market higher

THE Australian share market closed in the black as a resolution on the US budget deal was cheered.

Lauren Barrett

The budget deadlock had been a drag on local stocks for more than a fortnight, but with Bloomberg reporting that President Barack Obama had signed into law a measure to end the government shutdown and raise the debt ceiling, it seemed investors were breathing a sigh of relief.

Defensive stocks such as health care fared the best, while gains were also posted in the banking and industrials sector.

The miners were more subdued, with basic materials shedding 0.2% as a survey from National Australia Bank found business conditions in the mining sector were at a 14.5-year low.

The S&P/ASX 200 index firmed 0.4%, or 20.1 points, to 5283.1 points.

The ASX was flooded with quarterly reports from resource companies today, which were yielding mixed results.

Fortescue Metals Group dropped 3% to $A5.24 after reporting it had increased iron ore shipments and lowered costs.

Meanwhile, fellow Pilbara operator, Atlas Iron, shed 1% to $1.03 after releasing its quarterly results.

Gindalbie Metals meanwhile firmed 16% to 14.5c on no news.

The mining giants were flat, with Rio Tinto closing 0.6% lower at $63.71.

Gold stocks were a mixed bag. Newcrest Mining shed 0.6% to $10.14, Perseus Mining added 5.4% to 48.5c and St Barbara jumped 3.4% to 46c.

Meanwhile, Jupiter Mines extended falls after the ASX approved its move to de-list. The company lost 11.3% to 4.7c.

Pepinnini Minerals was a standout junior, soaring 66.7% to 2.5c on the back of intersecting massive sulphides at its Marrawah prospect.

The Australian dollar was last trading at 95.40c.

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