ASX lifts 0.72% to close third week of gains

The news: The Australian sharemarket continued to rally on Friday, rounding off a third straight week of gains as hopes of a Fed pivot and cheaper credit ahead fuelled market exuberance. The benchmark ASX 200 lifted 0.88% on Friday to 7,442.70, 3.44% higher than a week ago.

The numbers: The Australian dollar has held its ground and is currently buying 67.0 US cents. The greenback has faded against major currencies towards the end of the week as risk-on investors turned away from the safe haven for now. Oil is set for its first positive week since October as the relief rally fuelled demand hopes, lifting Brent crude 0.52% to USD77.

By sector, interest sensitive stocks had a big week, with big gains for real estate stocks (+5.6), health care stocks (+4.5%) and IT stocks (+4.2%). Materials lifted 1.9% on Friday to finish 4.7% higher for the week, as global demand expectations rose and lithium bulls crossed their fingers the battery mineral has found its price bottom.

The context: The Reserve Bank will release its monetary policy meeting minutes on Tuesday in what's set to be a lean weak for raw, actionable data on Australia's economy. AGM season is winding down in the leadup to the Christmas break, with ANZ to front shareholders on Thursday.