Australia & World

Market Rap: ASX bounces off Easter holidays and bounces towards record highs

Mining and banking giants raised the Australian stock market to a record high of 50 points on Tuesday. This is because soaring commodity prices and positive reviews from reserve banks have boosted the spirit of traders.

The profits of 11 of the 13 largest companies on the market helped the Benchmark ASX 200 jump from a four-day Easter vacation to a four-month high and record the seventh best finish in history.

The index evaded weak Wall Street leads, rising concerns about economic growth in China and Europe by 41.8 points (0.6%), closing at 7565.2, the last level seen in the holiday rally in early January. rice field.

At some point, the local stock exchange rose to 7584.9, down just 47.9 points from the record daytime high of 7632.8 set on August 13, last year.

The wider All Ordinaries also rose 0.6% (45.7 points) to close at 7867.9, with the Australian dollar rising locally to 73.80 US cents.

Camera iconThe only major weaknesses at the pointed end of the market on Tuesday were healthcare stocks CSL and ResMed, which fell 1% to $ 262.35 and 0.1% to $ 31.59, respectively. NCA NewsWire / Christian Gilles credit: News Corp Australia

Soaring commodity prices have boosted BHP, Rio Tinto, Fortescue Metals, Woodside Petroleum and others, and Big 4 banks cheered in minutes from the RBA board meeting on April 5.

These factors have masked a protracted solidarity of fear, including but not limited to the diminishing outlook for global growth triggered by the Ukrainian conflict and the blockade of China’s Covid-19.

Hebe Chen, an analyst at IG Markets, noted that the World Bank has lowered its outlook for 2022, predicting global economic growth to decline from 4.1% to 3.2%. This is due to the negative effects of Europe and Central Asia.

“In fact, Ukraine and China are not the only ones facing a threat to their economic growth,” Chen said.

“In Western countries, people seem to agree with the fact that central banks must deploy the tools available to squeeze inflation out of their economies on a large scale.”

The latest insights into the Reserve Bank of Australia’s thinking have certainly revealed that interest rate cycles are likely to accelerate, but probably not until after the May 21 federal elections.

ASX WARECONOMY
Camera iconHebe Chen, an analyst at IG Markets, noted that the World Bank has lowered its outlook for 2022, predicting global economic growth to decline from 4.1% to 3.2%. This is due to the negative effects of Europe and Central Asia. credit: News Corp Australia, NCA Newswire / Gaye Gerard

Banks rebelled against the RBA’s reputation and its promising view of the local economy.

Commonwealth Bank was up 0.5% to $ 107.01, National Australia Bank was up 1.2% to $ 33.25, Westpac was up 1.2% to $ 24.40 and ANZ was up 1.2% to $ 27.75.

The Macquarie Group also rose, ending the day at $ 205.55, up 0.9%.

Iron ore is nearing its end, but prices are still high enough in the supply chain turmoil, with BHP rising 1.3% to $ 53.17.

Rio Tinto rose 0.9% to $ 121.66, Fortescue Metals rose 0.6% to $ 21.73, and BlueScope Steel rose 2.7% to $ 22.

ASX economy
Camera iconSoaring commodity prices boosted BHP, Rio Tinto, Fortescue Metals, Woodside Petroleum and others, and the Big Four cheered in minutes from the April 5 RBA meeting. NCA NewsWire / Nikki Short credit: News Corp Australia

Oil prices rose after Libya closed its largest oil field in protest and warned of further outages. Brent crude oil rose to $ 113 a barrel, and US natural gas prices reached their highest in 13 years.

As a result, Woodside Petroleum rose 1.6% to $ 32.91, Santos rose 1.6% to $ 8.32, and Origin Energy rose 0.6% to $ 6.59.

The only major weaknesses at the pointed end of the market on Tuesday were healthcare stocks CSL and ResMed, which fell 1% to $ 262.35 and 0.1% to $ 31.59, respectively.

Market Rap: ASX bounces off Easter holidays and bounces towards record highs

Source link Market Rap: ASX bounces off Easter holidays and bounces towards record highs

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