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Australian stocks close 1% stronger despite iron ore plunged

Australian stocks close 1% stronger despite iron ore plunged

SIDNEY :The Australian share market has closed more than 1 per cent higher, recovering on the back of a removal sector unfazed by a new low in the iron ore cost, and a rallying economic sector ahead of the Financial Services Inquiry report.
Bank stocks led the market higher in late trading, after the head of Suncorp said that there was a real chance the financial sector inquiry would make it easier for smaller banks to compete with the “big four”, due to likely capital holding requirements.
By the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was up 61.4 points, or 1.15 per cent, to 5396.2, while the broader All Ordinaries index added 59.4 points, or 1.12 per cent, at 5380.3.
The minerals sector defied economic settings to see strong growth throughout the trading day, as the iron ore price continued its rout sinking to a new five-year low of $US68.60 a tonne overnight.
In local economic news today, the Bureau of Resources and Energy Economics said it expects investment in resources and energy projects to slacken further over the next few years.