Aust shares jump in early trade

Australian shares have opened higher after a strong lead from Wall Street, with all sectors trading in the green.

The S&P/ASX200 benchmark index was higher by 75 points, or 1.26 per cent, at 6016.10 points after the first 15 minutes of trade on Wednesday.

The All Ordinaries index was 80 points, or 1.32 per cent higher, at 6125.5.

Overnight, US markets ended higher as investors bought energy and materials stocks and looked beyond a recent surge in coronavirus cases.

The three major US indices ended between 1.0 to 2.1 per cent higher.

In the local market, gains were led by a jump in energy and materials shares as well a strength in the heavyweight financials sector.

Investors will be watching for developments on the COVID-19 cluster has spread in Sydney. The outbreak, first detected at a pub in Sydney’s south-west, has been found to have infected 30 people and tracing continues.

Melbourne is in the early stages of a six-week lockdown following community transmission of the virus, which has blunted investors’ optimism.

The Australian dollar was higher at 69.95 US cents by 1015 AEST amid overall weakness by the US dollar against major currencies. It had closed at 69.54 US cents on Tuesday.

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