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ASX 200 to decline at open: Iron ore and copper surge

EditorOliver Gray
Published 17/05/2024, 08:29 am
© Reuters

Investing.com - The Australian stock market appears to be heading towards a slight decline at Friday's open as investors capitalize on recent gains following the market's most potent surge this year on Thursday.

ASX 200 Futures saw a increase of 0.5% after the S&P/ASX 200 closed just a hair's breadth away from a record high yesterday. This came on the back of encouraging jobs data, which sparked speculation that the Reserve Bank's next step might be an interest rate cut.

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The mining sector is expected to be a hotspot, given the recent rally of iron ore prices in Singapore. This surge was triggered by a Bloomberg report suggesting that Chinese officials would convene on Friday to address the nation's struggling property market.

Copper also experienced an uptick, rising an additional 2% to reach its highest point since mid-April 2022, as reported by the National Australia Bank.

Despite the Dow Jones Industrial Average momentarily surpassing the 40,000-mark for the first time, indicating a surge in confidence that the US Federal Reserve may soon switch to rate cuts, Wall Street ended on a lower note.

In the spotlight today are BSP Financial Group Ltd (ASX:BFL) and Reef Casino Trust (ASX:RCT), as both are set to host their annual general meetings.

On the bond markets, Australia 10-year rates were at 4.257% while 2-year rates were at 3.962%.

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