An end of financial year buying frenzy saw the Aussie market finish the week up 83 points (+1.8%), settling at 4591.
The resources rallied on the back of a strong week for commodities.
Energy stocks also had a good week with oil giant Woodside Petroleum (WPL) rising 1.7% after a strong week for oil prices.
The banks were also stronger with National Bank (ASX:NAB) and Westpac Bank (ASX:WBC) rising around 3% each.
Investment group Macquarie (ASX:MQG) continued to underperform, finishing the week a touch lower.
The defensive healthcare and utilities sectors were also among the best performers of the week.
Economic News. What Does it Mean?
There were no major economic announcements last week, although some important data was released this morning.
Retail sales dropped 0.6% in May, massively disappointing the market which had expected sales to actually rise 0.3% for the month.
The market and the Aussie dollar fell on the news, as investors virtually wiped out all chance of a rate rise at tomorrow’s RBA meeting. Investors had tipped next month’s meeting to be the earliest the RBA would act, although this is also now looking less likely.
Overseas Market and Commodity Wrap:
Global equity and commodity markets surged higher last week, as some positive developments in the Greek debt crisis helped to restore investor sentiment.
News that the Greek parliament passed two financial austerity bills saw assets bounce back sharply after weeks of selling.
US markets had their best week in two years, as each of the three major indices rose more than 5%. The Nasdaq (+6.1%) was the strongest, followed by the S&P 500 (+5.7%) and the Dow Jones (+5.4%).
European markets were equally as strong, recovering to their highest level in a month. The FTSE 100 in London rose 5.1% for the week.
Markets in Asia-Pacific also gained, albeit to a lesser degree.
The Nikkei was the strongest of the major Asian indices, rising 2% for the week. Chinese markets lagged on weak manufacturing data and fears of more rate hikes.
The Hang Seng rose 1% last week and the Shanghai Composite only managed to eke out a 0.5% gain.
The Aussie market in contrast rose 1.8% for the week.
Most commodity prices gained last week as investors switched back into risk assets.
Oil prices closed the week at US$94.94 a barrel, up 4.1% and during the week managed to move back above US$95 a barrel for the first time since emergency oil supplies were released into the market.
The major precious metals were rare losers last week, closing lower as investors switched out of safe-haven assets.
Gold dropped 1.3% for the week to US$1482 an ounce and silver dropped 2.7%. However, platinum and palladium finished the week ahead.
Base metals all finished in positive territory. Copper, lead, nickel and zinc all rose at least 3.7% last week.