Sunday 21st January 2024
ASX pushes higher, spurred on by optimism in US Markets
Australian stocks surged on Friday, breaking a four-day losing streak, following a robust US labour data report that instilled optimism in the economy and propelled Wall Street and risk assets into positive territory. The S&P/ASX 200 concluded the day 1 percent higher at 7421.2, rebounding from Thursday’s one-month lows. The All Ordinaries also recorded a 1 percent gain, reaching 7652.3. Technology emerged as the standout performer, with the sector gaining 3 percent. Notable gains included a substantial 11.42 percent surge in Zip to 63.5¢, a nearly 10 percent jump in EML Payments to $1, and a 4.8 percent rise in Xero to $114.73.
Iron Ore Miners lift, whilst uranium miners fall from large +20 per cent monthly gains Investors displayed a preference for resource stocks, buoyed by a commodity price rebound amid expectations that China, a major consumer, would announce stimulus measures to support its slowing economy. Heavyweight miners Rio Tinto gained 0.9 percent at $128, while Fortescue rose 2 percent to $27.58. BHP Group closed flat at $45.73. In contrast, uranium miners faced declines, with Boss Energy and Paladin Energy among the session’s biggest laggards, each down more than 2 percent after strong rallies earlier in the week. The significant banks experienced gains, with ANZ closing 1.3 percent higher at $26.13, CBA up 0.7 percent at $113.28, NAB rising 1.3 percent to $31.28, and Westpac climbing 1.5 percent to $23.20.
The S&P500 reaches record highs, propelled by US Chip Makers and Mega Caps On Wall Street, the tech sector led another upward move, propelling the S&P500 to record highs, buoyed by the excitement surrounding artificial intelligence and a rally in US chipmakers. The same tech companies that drove the 2023 rally are leading the charge in January, with Nvidia, Microsoft, and Meta Platforms being the S&P500’s top gainers. Despite a modest rise in government bond yields this month, markets are anticipating a soft landing for the US economy in 2024. The resilience of stocks, especially in big tech, signals investors reluctance to abandon last year’s successful investments. The rally has also helped the US benchmark recover 20 percent from equity sell-offs that began in 2022.
James is an experienced senior journalist and editor of The Inside Network's publications.
