* The Australian Securities Exchange (ASX) experienced a strong performance on Friday, with materials shares leading the charge. * The ASX 200 index rose 1.95% to reach a 6-week high. * The strong performance was driven by a surge in commodity prices, particularly in the energy sector.
This impressive performance was driven by a surge in commodity prices, particularly in the energy sector. The index’s strength was further bolstered by a positive sentiment in the technology sector, with major players like Apple and Microsoft reporting strong earnings. The Australian dollar (AUD) strengthened against the US dollar (USD) due to the positive economic outlook and strong commodity prices.
The rise in both BHP and Rio Tinto shares suggests that investors are confident in the outlook for the iron ore market. The price of iron ore has been increasing steadily over the past few months, driven by strong demand from China and other emerging markets. BHP, the world’s largest iron ore miner, has benefited from this upward trend.
This is due to the construction boom, infrastructure development, and the ongoing urbanization process. The construction sector is a major driver of steel consumption in China, accounting for around 40% of total steel consumption. The construction sector is further divided into residential, commercial, and industrial construction. Each of these sectors has its own unique characteristics and demands for steel. Residential construction, for example, requires steel for framing, roofing, and windows.
Trading Economics said new economic data had heightened expectations of a 50-basis point cut: Markets now anticipate a 59% chance of a 25 bps cut and a 41% chance of a 50 bps reduction, according to the CME FedWatch tool. In Europe, the ECB cut rates by 25 bps as expected, reflecting growing confidence among policymakers that inflation is on a sustained downward path. Now let’s take a look at some of the non-mining ASX materials shares. The largest non-miner in the sector is building materials supplier James Hardie Industries plc (ASX: JHX). The James Hardie share price dipped 1.37% last week to $53.21 on no price-sensitive news.
Shares in plastics packaging company Amcor CDI (ASX: AMC) fell 1.78% to $16.30. Shares in explosives company Orica Ltd (ASX: ORI) lifted 0.56% to $17.81. Neither company issued price-sensitive news. ASX 200 market sector snapshot Here’s how the 11 market sectors stacked up last week, according to CommSec data. Over the five trading days: