The Australian markets closed out Wednesday’s trading session on a positive note, with the ASX All Ords leading (+0.35%) the benchmark 200 Index (up by 0.31% to close at 7848.5 points). This upward trajectory was primarily fuelled by a notable surge in mining stocks, catalysed by bullish forecasts around iron ore consumption.
Leading the pack in the materials sector, major mining conglomerates such as BHP (ASX: BHP) up 0.73% today, Fortescue Metals (ASX: FMG) up 1.90%, and Rio Tinto (ASX: RIO) up 1.91%, all saw substantial share price appreciations, collectively pushing the sector up by 0.9%. The heightened anticipation around demand for iron ore echoed in investor sentiment, with iron ore futures suggesting an ascent of 1.37% and spot prices standing at a robust US$107.55 a tonne.
In stark contrast to the fruitful day for miners, the Information Technology sector lagged significantly, recording a drop of 1.2%. Paring the overall gain of the index, tech firms struggled to mirror the enthusiasm evident in the resource sector. Notably, WiseTech Global (ASX:WTC), a large-cap player in the tech space, was the day’s biggest loser among its peers, with its shares dwindling by 2.96% to close at $89.17.
On a brighter note, Real Estate Investment Trusts (REITs) staged a rally, signifying investors’ confidence in the property market and possibly an inclination towards more defensive assets.
Meanwhile, the commodities market witnessed gold trading at a commanding US$2,374.30 an ounce, indicating a sturdy appetite for safe-haven assets amidst a varied financial landscape.
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In contrast to the uptick in the ASX today, international markets look set for a difficult day after a hotter than expected US CPI inflation print. Dow Jones, S&P 500, and Nasdaq all looked poised for heavy losses, all down more than 1% on the day so far, with the Russell 2000 more than 2.3% in the red after just the first hour of US trading. On the global market stage, the day produced a mixed bag of outcomes. Japan’s Nikkei retracted by 0.56%, whereas both Hong Kong’s Hang Seng and China’s Shanghai Composite recorded gains of 1.48% and 0.32%, respectively.
The gains made by the ASX were largely attributed to robust performances in the mining and REITs sectors. With diversified outcomes across various industries and global markets, investors remain keyed into the delicate balance between sector-specific prospects and overarching economic indicators.
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