Australian shares hit over 7-week high as banks, energy stocks gain; Coles tumbles

Australian equities climbed to their strongest level in more than seven weeks on Friday, with the S&P/ASX 200 up 1.1% at 8,992.60 by 0017 GMT. Business Recorder reported that the index reached its highest point since September 8 and was ahead more than 2% for October, putting it on course for its best monthly result in three months.

Banks and energy shares led the gains, while Coles sank more than 10% after its first-quarter revenue came in just below analyst estimates. The decline dragged the consumer staples index down by as much as 4%; financials gained 1.3% ahead of next week’s earnings, and energy stocks rose as much as 2.2% with oil above $100 per barrel. Investors were also watching the Reserve Bank of Australia’s November 3 rate decision, with swaps pointing to a 43% chance of a hike next week.