Australian shares have risen the day after the federal budget, however, analysts say the cash splash wasn't "market-moving" and the benchmark more likely followed Wall Street's optimism about the war in Ukraine easing.
The ASX 200 opened 0.5 per cent higher and eventually finished 0.7 per cent higher at 7,515 points.
That is a new 50-day high. The benchmark has closed up six days in a row.
Top performers included Life 360 (+9.6pc) and Magellan (+8.5pc).
Nine out of 11 sectors ended higher. Information technology was the best performing sector, with a gain of 3.8 per cent. Tech stocks also did well on Nasdaq on Wall Street overnight (local time).
Commodity stocks dragged down the market, with Whitehaven down 3.5pc, South32 down 3.5pc, and Silve Lake losing 2.8pc.
This comes as the price of oil dips again, and as commodities continue their volatility amid the war in Ukraine.
Telstra's CEO stepping down
Telstra ended down 0.8 per cent after it was announced early this morning that chief executive Andy Penn is stepping down from the top job after seven years.
Mr Penn was at the helm of Telstra during its major restructure, which saw 8,000 people lose their jobs.
He will be replaced by the telco's current chief financial officer Vicki Brady from September 1.
She will be Telstra's first female chief executive.
Yield curve flattening hints at looming US recession
Wall Street was boosted by talk of yield inversion and further optimism that the war in Ukraine could be resolved sooner than later.
The Dow Jones gained 1pc, S&P 500 was up 1.2pc, and the Nasdaq gained 1.8 per cent with the likes of Netflix boosting the tech-heavy index.
In trade, the US Treasury yield curve had started flattening with parts of it inverting, as investors price in an aggressive rate-hiking plan by the US Federal Reserve as it attempts to bring inflation down from 40-year highs.
Analysts often see so-called yield inversion as a reflection of market concerns that an economy could go into recession.
IG's Kyle Rodda said this showed "the US economy is on a countdown to recession".
"At least, that's what history suggests," he said.
"The 10-2 spread inverted overnight — an event that was closely watched and widely anticipated — signalling that the extraordinary pandemic boom in the US economy may come with an equally forceful bust.
"But other than some blaring red headlines and a few pre-emptive eulogies for this economic cycle, markets broadly pushed on with the risk recovery seen over the past fortnight."
NAB added that: "The news headline writers haven't yet got their field day."
"Even if it has gifted a suitable song title for today's missive," the bank added.
European stocks also performed well, whereas the price of Brent crude also shaved off more losses.
At 7:30am AEDT, it was down 0.9 per cent to $US111.43.
The price of oil has been surging on the war in Ukraine, with the country that invaded it, Russia, one of the biggest producers.
The surging price reflects concerns in supply, so it dropping again shows investors may feel that the conflict could ease. There have also been concerns about lockdowns in China, which could ease demand, too.
Last night's federal budget contained measures to reduce the price of fuel at the pump here.
Meanwhile, the local currency gained 0.3 per cent.
"As is usually the case, AUD/USD was not influenced by the release of the government's budget overnight," ANZ said.
"With most of the government's policy changes leaked to the media in recent days, there was little 'new news' for financial markets to digest."
NAB added the budget "sprung few surprises and shouldn't be market-moving today or in the days ahead".
"Beyond perhaps watching to see what impact if any it has on the Coalition's near 10-point polling deficit to Labor on a two-party preferred basis."
