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FIVE at FIVE AU: ASX200 closes higher as iron ore rises

Published 04/07/2024, 04:03 pm
Updated 04/07/2024, 04:30 pm
© Reuters FIVE at FIVE AU: ASX200 closes higher as iron ore rises
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The ASX200 has closed 1.2% higher today with mining and property leading the gains.

Mining stocks got a boost from iron ore futures hitting a one-month high, helped by robust near-term demand, improved steel fundamentals and hopes of more stimulus from top consumer China.

On the charts, the local market is on the cusp of a technical breakout that could prompt a test of its record high in coming days.

Copper to retest $10,000

Citi anticipates copper prices will retest US$10,000 per tonne in the coming weeks, ahead of expected Chinese policy easing announcements around the Third Plenum meeting from July 15-18.

"Our China analysts expect greater support through reforms for power grid investment and renewables from the plenum," says Citi analyst Paul McTaggart.

"We think the grid is an obvious focus for further investment to avoid bottlenecks for renewables additions. More property measures and monetary easing would also be copper-supportive."

Meanwhile, despite iron ore hitting a one-month high today, Citi has told clients to "fade strength in iron ore" prices.

"Iron ore prices are likely to remain volatile ahead of China’s Third Plenum but fundamentals suggest risks are skewed to the downside and we maintain our three-month price target of $US95 a tonne," said McTaggart.

China's onshore steel demand remains muted with construction and infrastructure activity slowing due to inclement weather and the usual summer slowdown.

A “bad culture” at ASIC

A Senate Economics Committee inquiry into ASIC has called for the corporate watchdog to be divided into two separate regulatory bodies.

The 20-month inquiry — which spanned five days of public hearings and 198 submissions from various financial, legal and accounting organisations, including the ATO — criticised ASIC’s "bad culture" and inability to prosecute white-collar crime.

Read more: Inquiry recommends splitting up corporate watchdog but changes unlikely any time soon

Double digit returns for Aware Super

Industry superannuation fund Aware Super has delivered a double-digit return of 11% for its default option in FY2024 — its second consecutive year of double digit growth.

Aware cashed in on a heavier exposure to soaring technology and healthcare stocks than its rivals, and a higher allocation to international shares.

Over a 10-year horizon, the option has averaged 8.82% per annum.

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