ASX rallies again after US stimulus deal

Australian shares have rallied for a third straight day after a massive US stimulus deal sent global markets soaring.

The S&P/ASX200 benchmark index rose 78.8 points or 1.58 per cent, to 5,076.9 at 1015 AEDT on Thursday.

The All Ordinaries index was up 86.2 points, or 1.72 per cent, higher at 5,092.4 with all sectors higher except telcos and consumer staples.

Local stocks had rocketed in the final minutes of trade on Wednesday after US politicians finally reached a deal – yet to be passed – on a $A3.3 trillion stimulus measure to shore up the world’s biggest economy.

Global stock market sentiment improved further overnight but there were questions about when it would pass.

Since then a string of more local COVID-19 job losses have been announced, with Virgin saying its redundancies would top 1,000 and Flight Centre talking of standing down or sacking 6,000.

NAB’s morning call says it’s difficult to ascribe any reasoning behind some market moves.

“Certainly, the global picture continues to look dire, with rising COVID19 infection and mortality rates in Europe and the US, and government measures to keep the economy ticking over whilst retaining the spread are feeling the pressure.”

NAB noted that in Europe talk of Corona bonds are moving slowly and in the US the senate has yet to sign the stimulus bill.

The Aussie dollar was buying 59.09 US cents at 1015 AEDT on Thursday, down from 60.33 US cents on Wednesday.

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