The ASX200 trades 71 points higher at 6965 at 3.05 pm Sydney time
A rebound-on Wall Street last week led by the high beta Nasdaq (4%) has been behind a solid session to start the week for the ASX200.
Last week's recovery on Wall Street was driven by hope that the Feds rate hiking cycle is set to decelerate after the September FOMC, as well as lower oil prices and solid economic data.
Also playing a part, a break from the unrelenting barrage of hawkish Fed Speak with the Fed now in a two-week blackout ahead of the September FOMC meeting.
Strong China credit data released on Friday, that helped the price of iron ore back above $100 p/t has supported the big miners.
FMG gained 3.76% to $18.49. BHP added 3.4% to $39.39, Mineral Resources climbed to a fresh record high as it added 3.35% to $73.90, and Rio Tinto added 1.84% to $96.10.
Gains for IT stocks, enjoying the prospect of less aggressive rate hikes into year-end, led by Sezzle as it added 7% to $0.69c. EML Payments added 4.5% to $1.04. Afterpay owner Block added 4.5% to $108.55, Life 360 added 4% to $5.65, and Megaport added 3.7% to $8.62.
The Financial Sector has kicked higher after all 4 of the big banks passed on last Tuesday's RBA 50bp rate hike in full. ANZ added 1.6% to $23.19. Westpac added 1.2% to $21.51, CBA added 0.85% to $96.35 and NAB added 0.64% to $30.03.
After touching a seven-month low last week at $81.20, the price of crude oil is back trading above $85.00, helping Beach Energy to add 1.5% to $1.68. Woodside added 1.4% to $33.00. Santos fell 1.15% to $7.76 on speculation that a large Chinese shareholder was selling down its stake in the oil and gas producer.
Shares in a2milk were up almost 4% in early trading on news that the license for its partner in China, Synlait had been extended. The share price has since trimmed gains to be trading at $5.68, +2.16%.
Technically last week's rebound sets the ASX200 up for a period of choppy range trading between 6700 and 7100, in line with our view of U.S equity markets.
Source Tradingview. The figures stated are as of September 12th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
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