Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

AU Evening Wrap | ASX Surpasses 8200 as Fed Cuts Rates; BHP Rallies on Morgan Stanley Buy Rating

avatar
Moomoo News AU wrote a column · Sep 19 15:26
Market Performance
Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.6% higher at 8191.9, marking a record close for the fourth consecutive day as Asia-Pacific equities surged following the U.S. Fed's rate cut.
Commodity stocks led the gains, with shares in iron-ore, lithium, oil, and coal companies all rising. The benchmark index initially dipped in morning trade but rebounded on stronger-than-expected local jobs data. $Fortescue Ltd (FMG.AU)$, $BHP Group Ltd (BHP.AU)$, and $Rio Tinto Ltd (RIO.AU)$ saw increases between 1.2% and 2.55%. Metals recycling company $Sims Ltd (SGM.AU)$ soared 12% after indicating improved performance. Banks $National Australia Bank Ltd (NAB.AU)$, $CommBank (CBA.AU)$, $Westpac Banking Corp (WBC.AU)$, and $ANZ Group Holdings Ltd (ANZ.AU)$ rose between 0.2% and 1.1%.
AU Evening Wrap | ASX Surpasses 8200 as Fed Cuts Rates; BHP Rallies on Morgan Stanley Buy Rating
AU Evening Wrap | ASX Surpasses 8200 as Fed Cuts Rates; BHP Rallies on Morgan Stanley Buy Rating
AU Evening Wrap | ASX Surpasses 8200 as Fed Cuts Rates; BHP Rallies on Morgan Stanley Buy Rating
Top News
Australia's Job Market Surpasses Expectations, Boosting Economic Stability
Australia's job market grew significantly in August, with employment rising by 47,500, exceeding expectations of 26,400. This marks the fifth consecutive month of strong labor force growth. The participation rate held steady at a record high of 67.1%, and the unemployment rate remained at 4.2%. Despite a cooling broader economy, local businesses continue to fill high levels of vacancies, especially for skilled labor. This robust job market supports consumer inflation and allows the Reserve Bank of Australia to maintain higher interest rates.
Fed's Bold Rate Cut Aims to Balance Inflation Control and Economic Stability
The Federal Reserve cut interest rates by half a percentage point, marking its first reduction since 2020 and signaling a new phase in its fight against inflation. With 11 of 12 Fed voters backing the cut, the benchmark federal-funds rate now ranges between 4.75% and 5%. The move, larger than analysts expected, aims to ease borrowing costs and prevent past rate hikes from weakening the labor market. Fed Chair Jerome Powell emphasized the commitment to maintaining economic strength. Despite immediate stock market gains, indices ended the day lower. The rate cut provides relief for consumers and small businesses with variable-rate debt, while long-term borrowing costs have already been declining. The Fed plans further cuts, aiming for a soft landing that reduces inflation without triggering a recession.
Mining Giants Drive ASX Rally Amid Iron Ore Price Rebound
The ASX rallied as investors reinvested in mining stocks, driven by a rebound in iron ore prices to $US92.35 per tonne in Singapore. BHP surged 2.6% to $40.19, boosted by a Morgan Stanley buy rating, while Rio Tinto rose 3.5% to $113.61 and Fortescue gained 1.2% to $17.64. However, the defensive industrials sector fell by 1%, with ALS leading the decline, dropping 8.6% to $13.67 due to volume headwinds in its minerals business.
Source: Dow Jones Newswires, AFR, ASX
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
5
2
+0
1
Translate
Report
48K Views
Comment
Sign in to post a comment
  • Veleda : The Australian Government has decided to back the further development of critical minerals  mining with financial support grants to help with processing operations, and this assistance has already enabled plant building activities to be rapidly advanced.
    Some of the small cap miners with large reserves are now negotiating processing contracts, and there is a very high amount of interest being given to these totally undervalued stocks as a result.
    An example is Everest Metals Corp,  ASX;EMC at $20million MC, $0.011 SP.
    This REE rubidium miner has now got all the gates wide open to end supply contracts now being negotiated, with full govt. financial backing for processing.