Markets Live, Tuesday February 8, 2022

The local stock market touched a 12-session high of 7200 points on Tuesday as improving sentiment, and strong financial sector reports, pushed the index higher.

The benchmark S&P/ASX 200 closed 75.8 points or 1.1 per cent higher at 7186.7 points, the highest close since 20 January.

The heavyweight mining stocks outperformed with Fortescue closing at a six-month high of $22.23, BHP rising 3.7 per cent and Rio Tinto adding 2.2 per cent.

The financial sector was busy digesting ANZ’s market update on Monday, while strong quarterly results from Macquarie Group pushed its shares up 3.9 per cent to $201.57.

Portfolio manager at Tribeca Investment Partners, Jun Bei Liu, said the earnings season “so far seems to be okay”, which was helping sentiment. A further 17 companies in the ASX200 are due to report this week.

“After the correction last month there is a bit more positivity coming back into the market,″⁣ Ms Liu said.

Macquarie’s results and the language it used were “very bullish”, she added. She now expects to see analysts upgrading their forecasts for Macquarie after comparing their existing forecasts with the bullish language used by the investment bank on Tuesday.

Suncorp also reported stronger than expected results, leading to a 5.5 per cent gain to $12.03. And embattled investment company Magellan gained 7.2 per cent after an 11.2 per cent drop on Monday.

However, the technology sector was under pressure following a late sell off on the Nasdaq overnight.

Block Inc depository receipts fell 6.3 per cent to $142, the lowest since Afterpay was taken over. In the US, Block shares have fallen 63.5 per cent since August 2021. On Tuesday Appen fell 7.1 per cent to an eight-year low of $8.25 and Computershare fell 2.4 per cent.

Healthcare giant CSL closed 0.9 per cent higher and travel stocks continued to bounce higher ahead of borders reopening for tourists later this month. Webjet gained 7.4 per cent, Flight Centre gained 6.7 per cent, and Corporate Travel gained 4.3 per cent.