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Headline indices of the Australian share market advanced on Monday, 14 October 2019, with most sectors notching gains, as investors risk sentiments got a boost after the United States and China agreed to a limited trade deal in last week's high-level trade negotiations and China's trade surplus rose unexpectedly in September. Around late afternoon, the benchmark S&P/ASX200 index grew 47.59 points, or 0.72%, to 6,5654.40, while the broader All Ordinaries added 47.10 points, or 0.7%, to 6,769.
President Trump said that the two countries reached a “very substantial Phase One deal” and agreed not to implement tariffs set to go into effect next week. China, meanwhile, said it would increase purchases of U.S. agricultural products. As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.
China's trade surplus rose unexpectedly grew to $US39.65 billion in September, above the $US34.83 billion level of August, according to data released by China's National Bureau of Statistics (NBS), largely reflecting a steep 8.5% decline in imports compared to 2018. Over the same period, the value of exports fell by a smaller 3.2%, down from 1% in the year to August. The NBS said China's trade surplus with the United States narrowed from $US26.96 billion in August to $US25.88 billion in September, leaving its cumulative surplus with the US so far this year at $US221.33 billion.
In company news, Shares in big-box retail landlord Home Co jumped 11% up to A$3.72. The float price was A$3.35. It is largest real estate initial public offering this year and grew from the stores of Woolworths' failed Masters hardware chain. HomeCo's founding shareholders include Melbourne-based Chemist Warehouse owners Mario Verrochi and Jack Gance, retail rich-listers Zac Fried and Morry Fraid, who own the Anaconda and Spotlight stores, Aurrum investors Mary and Alex Shaw and Greg Hayes, and Perth-based Primewest's David Schwartz and John Bond. Spotlight Group and Chemist Warehouse's 24 stores account for 7.8% of HomeCo's gross leasing income. The group's 30 properties are valued at $925 million. Of those, 21 are operating as retail and services centres and nine are waiting to be redeveloped - identified as a fund's growth engine.
CURRENCY NEWS: The Australian dollar inclined against greenback on Monday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6784, climbing from an earlier low of $0.6775.
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