Australia 200 S&P/ASX 200

Interesting facts

The AUS 200 consists of the largest 200 companies on the Australian Stock exchange and can be a good gauge of local investor sentiment. The larger the company by market capitalization, the greater its influence on the index. Australian mining stocks dominate the mix, along with a few large banking stocks.

Price drivers

Australia is a resource-based economy. Thus, global commodity demand, chiefly base metals, can have a significant impact on this index. Demand from China is particularly important for Australia’s mining sector, so the health and trade relationship with the world’s second largest economy should be taken into account when looking at the AUS 200. The Aussie dollar can also impact price action, as a high local dollar makes Australia’s goods less competitive. Also worth considering is the fiscal position of the government, monetary policy, the health of the global credit market (Australian banks rely heavily on offshore credit markets) and sentiment.