The Australian stock market has received a boost from higher commodity prices with a focus on the rebound in iron ore. The materials and energy sectors are driving the market higher towards the key 6000 resistance as it bubbled up to within 20 points of the mark just after midday.
The outstanding performer today has been Fortescue Metals as it is up over 30 percent in the last three trading days. Since news of US take-up of its Senior Secured Notes last Thursday, the company’s share price has jumped convincingly higher out of its recent trading range, bolstered by the 15% rise in iron ore prices in the last week. The eruption in price action is possibly short covering given the ASIC report that shows FMG is the most short-sold stock in the market at the moment.
Tonight, we have Apple reporting after the closing bell and if their performance is as solid as its peers, it could send the NASDAQ once again into new record territory. Other key events for the rest of the week include retail sales and inflation numbers out of Germany on Wednesday. Towards the end the week, there are PMI numbers out of China and the US on Friday with both numbers expected to show expansion.For further comment from CMC Markets please call 02 8221 2124.