FX.co ★ Australia Shares Poised to Reverse Prior Week’s Dip

Australian shares rose 82 points, or 0.9%, to 8,806 in Friday morning trade, rebounding from a muted session on Thursday. The advance followed stronger U.S. equity futures after Wall Street finished mixed overnight on the back of softer U.S. jobs data.

Sentiment was further supported by an upward revision to Australia's private sector activity in June, underscoring a return to growth in services. However, gains were tempered by interest rate worries, after the Reserve Bank's June meeting minutes and recent comments from Governor Bullock indicated that further policy tightening may still be required, even as tensions in the Middle East have eased.

Sector leaders included consumer durables, healthcare, retail, and process industries. Three of the four major banks advanced between 0.3% and 1%. Mining heavyweight BHP Group added 0.3%, while notable movers among resource stocks included Northern Star Resources (up 7.0%), Evolution Mining (up 4.8%), and Greatland Resources (up 2.6%).

For the week, the market is on track to finish modestly higher, up about 0.2% so far, recouping losses after a slight decline in the previous week.