Material stocks Full Steam Ahead
Aussie shares were poised for a day of gains and local stocks not disappoint. The largest capped stocks found support in early trade and lead the market up 0.9% across the trading session, erasing most of the losses the local bourse faced over the course of selling last week.
Iron ore continues to buck the recent commodity trend and strengthened for a consecutive third session, firming up almost 5% overnight. The encouraging climb instilled fresh faith in local investors who scooped up material and energy stocks, which have been under pressure of late.
Monthly building approval data was released ahead of lunch. Returning a month on month decline of 8.2%, a steep drop compared to an expected pullback of just 0.8%. The Aussie dollar sold off immediately following the news and currently trades in early 0.73 ranges.
In afternoon trading, volumes remain traditionally skinny for the week. Investors remain cautious after last week’s 150 point drop. The market continues to trade in green as the financials also add to the session’s gains, taking the local index just 40 points shy of last week’s recent high.
For further comment from CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Aussie shares experienced a day of gains, with local stocks rising by 0.9% during the trading session, recovering from the losses faced last week.
Iron ore prices have been on the rise, strengthening for a third consecutive session and increasing by almost 5% overnight, which has boosted investor confidence in material and energy stocks.
The monthly building approval data showed a significant decline of 8.2%, much steeper than the expected 0.8% pullback. This led to a sell-off of the Aussie dollar, which is now trading in the early 0.73 ranges.
Following the release of the building approval data, which showed a larger-than-expected decline, the Aussie dollar sold off and is currently trading in the early 0.73 ranges.
Yes, investors remain cautious after last week's 150-point drop, even though the market is trading in green and financials are contributing to the session's gains.
Material and energy stocks are benefiting from the recent rise in iron ore prices, while financials are also contributing to the market's gains.
The local index is just 40 points shy of last week's recent high, indicating a recovery in the market.
For further commentary from CMC Markets, you can call 02 8221 2135.
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