Gains from banks and miners are helping push the ASX 200 up strongly on Thursday. The index is up 0.6 per cent following the second best gain of the year in the US overnight. Federal Reserve chair Jerome Powelldelivered a speech with some comments suggesting there could be fewer rate hikes next year than expected.
The biggest event of the week however is yet to come. Leaders will meet over the week at the G20 Summit in Argentina with hopes this could be used as a platform for a US-China trade deal. An accord could be received as positive news by investors next week.
Jerome Powell’s dovish tone last night pushed the US dollar lower and in turn commodities higher. Mining stocks are among the best performers at lunch with most base metals and iron ore improving strongly.
Rio Tinto (RIO) confirmed it will invest $3.5bn in a new iron ore mine in WA’s Pilbara region. The project will boost capacity when completed in 2021. RIO has been in the process of replacing older mines.
Orora (ORA) is up 2 per cent after the packaging group announced an US$80.5m purchase of Texas based boxing company Pollack. This solidifies its presence in North America.
Afterpay (APT) is up 6.8 per cent. While ASIC recommended tighter regulation for buy-now-pay-later companies it fell short of suggesting compliance with the National Credit Act.
Aristocrat Leisure (ALL) is a weight on the market despite handing down a near 10 per cent lift in FY profit to $542.6m. the result was boosted by record earnings in Australia andstrong growth in its US and digital operations.
Bingo Industries (BIN) is down 6 per cent after the ACCC expressed concerns about its proposed acquisition of Diala-Dump.
Infant formula maker Bellamy’s (BAL) and pharmaceutical group Mayne (MYX) are both down as they meeting investors at AGMs.
1.4bn shares have changed hands so far today worth $2.3bn. 635 stocks are up, 366 down and 311 are flat.
Published by CommSec