The financials sector added 2.7 per cent, with miners rebounding, however Perpetual’s Matt Sherwood warned shares could turn lower again.
Shares snapped a seven-day losing streak on Tuesday, powered higher by a rally in miners and energy businesses as investors bet rising price inflation can power commodities higher.P/ASX 200 rose 1.4 per cent, or 90.4 points, to 6523 points, with the broader All Ordinaries Index of the 500 largest companies adding 1.4 per cent.
“There’s a chance we get a short-lived rally as investors try some dip buying, but I still think we’re in a sell the rally environment,” he said. “Given the fact rates are rising pretty aggressively, earnings growth is overestimated, I don’t think the market’s got down to a level yet where it’s a screaming buy.“There’s a lot of headwinds, particularly the fact central banks aren’t even halfway through their tightening cycle,” he said.
In New Zealand, the Westpac McDermott Miller Consumer Confidence Index shed 13 points in the June quarter to a record low level of 78.7 as the Reserve Bank of New Zealand increased interest rates to 2 per cent in May.