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FIVE at FIVE AU: Third day of recovery for ASX as healthcare and mining stocks push higher

Published 10/04/2024, 04:03 pm
Updated 10/04/2024, 04:30 pm
© Reuters.  FIVE at FIVE AU: Third day of recovery for ASX as healthcare and mining stocks push higher
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The ASX200 made some solid progress today, notching a 20.50-point or 0.26% gain to 7,844.70 points.

The bourse hit a peak of 7,896 points at the end of March before pulling back a full 1.43% a few days later. We’re now sitting about 0.83% off that 52-week high, having gained 0.80% over the last five days.

Healthcare was the strongest performing sector today, rising 1.10% as the bigger biotech stocks made broad progress – Resmed gained 2.21%, Fisher & Paykel Healthcare 2.84% and Ansel lifted 3.38%.

Recent strong commodity prices played a major role in driving ASX mining companies higher, especially iron ore and gold.

Materials gained 0.78% as a sector. Optimism around China’s steel industry picking back up buoyed BHP (ASX:BHP) 0.64% and Fortescue (ASX:FMG) 1.58% while Rio Tinto (ASX:RIO) lifted 1.93%.

As for the gold miners, Newmont gained 0.92% while Coronado Global Resources Inc gained 3.93% and FireFly Metals Ltd (ASX:FFM) gained 8.0%.

Utilities, Real Estate, Industrials, Consumer Discretionary and Comm Services also made solid showings with gains between 0.35% and 1.06%, while Info Tech dropped 1.16% and Financials followed. Energy and Consumer Staples were almost dead flat.

As for the commodities themselves, West Texas Crude fell again today, shedding 1.42% and is now down 0.36% for the last five days.

Other notable movements included a 3.91% boost to tin, a 4.36% increase to palladium, a 1.75% lift for zinc and a 1.56% bump for platinum.

Top-performing stocks on the ASX today were coal miner Stanmore Resources, up 6.31%, and Nanosonics Limited, up 5.19%.

US yields dip ahead of CPI data

Capital.com senior financial market analyst Kyle Rodda joins us to discuss the impact incoming US inflation data, plus sticky inflation in New Zealand.

“There wasn’t a great deal of movement in US trade as the markets awaited a slew of corporate, central bank and data event risk,” Rodda wrote.

“US equities drifted higher, led by tech stocks, driven by a pullback in yields, which dipped only modestly amid a short-term uptrend as markets price in stronger growth and stickier inflation expectations.

“Tonight’s US inflation data represents the next big test, with forecasters tipping a slight drop in core CPI to 3.7%."

... And in NZ

“The RBNZ will meet to determine policy today. The central bank isn't expected to adjust policy despite weaker economic conditions," Rodda said.

“Inflation is expected to remain stubbornly high in New Zealand, with economists forecasting that next week's CPI will reveal plus-4% price growth last quarter.

“After the last meeting's surprise dovish pivot, there'll be a focus on whether the central bank discusses the prospects of rate cuts. The first cut to rates is implied for October.

“Given the RBNZ's change from a dual mandate to a single, price-focused one, it's possible that the central bank will be reluctant to entertain policy easing despite a softer labour market and recession-like economic activity.”

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