The S&P/ASX 200 (ASX: XAO) was trading 1.67% higher on Tuesday, with shares of Xero Limited (ASX:XRO), Harvey Norman Holdings Limited (ASX:HVN) and Australian Foundation Investment Co.Ltd. (ASX:AFI) moving the Australian share market.
Overnight Gains from Wall St
Strong overnight gains from Wall St appear to be the catalyst for the local market’s rise today. In the US on Monday, shares of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Berkshire Hathway (NYSE: BRK) ended the day more than 5% higher.
It appears renewed expectations that the US Federal Reserve would cut interest rates buoyed market sentiment.
The gains from Monday’s trading erased some of the ground lost during the Coronavirus sell-off last week.
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1. Xero – up 7%
Founded in New Zealand in 2006, Xero has become the dominating player in the business and accounting software market in Australia, New Zealand and the UK.
Shares of Australia’s largest accounting software provider rose 7% on Tuesday to top the charts of the ASX 200 around lunchtime. Xero did not release any market sensitive information or a media release to investors today. Instead, it appears the market is thinking twice about the recent sell-down which saw its shares fall from around $89 last month to below $74 last week.
2. Harvey Norman Holdings – up 7%
Harvey Norman Holdings is a major retailer that both operates company-run stores and also franchises Harvey Norman stores.
Harvey Norman shares were thrust into the spotlight last week after the retailer reported its half-year financial results showing a 12 cents per share dividend but a softer than expected outlook statement. The outlook included an update about the likely impact of the Coronavirus: “Consumer and business confidence will take another toll until this threat is understood and mitigated.” You can read more here.
3. Australian Foundation Investment Co – up 6%
Australian Foundation Investment Company (AFIC) is Australia’s largest listed investment company (LIC).
Arguably Australia’s most prominent listed investment company, AFIC, did not release any new information to investors today. As with most companies today it appears the market is following the lead of Wall Street overnight, which rose over 5%.