Market Update: 24 September 2024
This week, the ASX 200 showed positive movement, rising by 1.08%, closing at 8,209.5 points on Friday 20th September. Gains were supported by strength in financials, energy, and mining sectors. Notably, major banks saw a boost, with Westpac rising by 2.38%, NAB by 2.29%, and ANZ by 2.21%. The miners were also strong contributors, with Fortescue Metals up by 2.56%, and BHP Group gaining 2.00%.
The AUD/USD rose by 1.43% to 0.68, supported by strength in commodities and rising global risk appetite.
US market overview
US equities had a solid week, with the S&P 500 advancing by 1.23%, the NASDAQ posting a strong 2.02% gain, and the Dow Jones climbing 1.06%. Technology stocks led the charge, as seen in the Information Technology sector, which rose by 1.33%, driven by optimism surrounding growth prospects. Key players like Microsoft gained 0.91%, while NVIDIA saw a slight dip of 0.67% after its recent rally.
Growth sectors outperformed, with Consumer Discretionary jumping 2.36% and Energy increasing by 2.53%, thanks to higher crude oil prices, which rose 2.61%. Defensive sectors such as Consumer Staples and Health Care struggled, falling by 1.44% and 1.25%, respectively.
The rise in Bitcoin was another notable factor, surging by 5.65%, reflecting strong risk-on sentiment in global markets.
European and Asian markets
In Europe, markets were mixed. The FTSE 100 fell by 0.58%, weighed down by higher bond yields and profit-taking in consumer stocks. Meanwhile, the DAX and CAC 40 saw modest gains of 0.47% and 0.68% respectively, as investor sentiment remained relatively upbeat ahead of central bank meetings.
Asian markets saw stronger moves, especially in Japan, where the Nikkei 225 surged by an impressive 4.20%, buoyed by optimism over potential government stimulus measures and a weaker yen, which fell by 1.47% against the US dollar. This provided tailwinds for Japanese exporters.
Implications for Australian investors
Australia’s strong performance, particularly in the financial and resources sectors, reflects solid domestic fundamentals alongside support from global trends. Rising commodity prices, especially in energy and materials, are key drivers.
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