An outstanding materials sector underpinned a strong Australian market on Wednesday, helped by positive leads from Wall Street and then better than expected news about Australia’s economy.

Record high steel prices backed up strong leads for BHP and Rio Tinto, which saw their US-listed stocks close firmly higher overnight. Similarly, Australia’s technology sector followed Wall Street’s tech-heavy Nasdaq index lower with buy now, pay later darling Afterpay falling 2.2 per cent and data centre operator Megaport slipping 3.2 per cent.

The S&P/ASX 200 gained 55.7 points to close 0.8 per cent higher at 6818 the highest close since last Friday’s tumble. Materials were 3.1 per cent higher, followed by financials and industrials. Consumer staples, healthcare, and communications also lagged.

Mining giant BHP hit a new all-time high price of $50.93 and South32 closed at a one-year high of $2.87. Rare earths producer Lynas continues to retrace eight-year highs, closing 6 per cent higher at $6.67. Gold miners also shone despite no change in the gold price. Ramelius Resources saw the best gains on the market, up 13.7 per cent to $1.37.

Commonwealth Bank economist Kristina Clifton noted big swings in consumer spending in the gross domestic product (GDP) data.

“Looking ahead, consumer spending will be supported by very low interest rates, a large pool of savings and the continued recovery in the labour market,″⁣ she wrote in a note to clients.

″Our internal data on wages and salaries paid into Commonwealth Bank bank accounts indicates that compensation of employees has continued to rise over the first quarter of 2021 despite the reduction in JobKeeper payments. The improvement in the labour market supports an ongoing lift in salaries and wages.”

The positive economic news boosted the financial sector. ANZ Bank closed at a 17-month high of $27.56, National Australia Bank closed at a 13-month high of $25.70, similarly Westpac was up 1.5 per cent to $24.53, and Commonwealth Bank gained 1.1 per cent to a two-week high of $85.40.