AUS
NZ
UK
CA
USA
IND
Highlights
- Australian shares are rising due to global interest rate cuts and China's stimulus signs.
- Tech stocks lead the charge, with BHP and gold miners benefiting from economic trends.
- Afterpay-owner Block Inc faces a decline despite increased profits.
Australian stocks are experiencing positive momentum, driven by global economic factors such as interest rate cuts and hopes of additional stimulus from China. The S&P/ASX 200 has gained 0.9% and is trading at 8298.5 points. Across all sectors, growth has been recorded, with technology stocks leading the way, up by 1.9%. The overall rise comes on the heels of similar gains in the US, where the S&P 500 gained 0.9%, the Nasdaq rose by 1.5%, and the Dow Jones remained flat.
The rally in Australian shares is largely fueled by central bank decisions globally. The US Federal Reserve, which recently held interest rates steady, maintained a cautious outlook on inflation while also acknowledging that the economy remains strong. Fed Chairman Jerome Powell indicated that while inflation has eased, it continues to be a concern. Bond markets are reflecting growth expectations, and Powell emphasized that the Fed's restrictive policies are likely to continue.
Additionally, global investors are eagerly awaiting signs of stimulus measures from China, which could help stabilize the country's slowing economy. The Chinese National People’s Congress Standing Committee is expected to introduce new economic stimulus programs, sparking optimism in global markets. Iron ore stocks have benefited from these expectations, with mining giant BHP (ASX:BHP) rising 1.7%. Meanwhile, gold miners have also seen an uptick as gold prices surged above $US2700 an ounce.
Among the companies in focus, Afterpay-owner Block Inc (ASX:SQ) has reported a solid 19% profit increase for the September quarter, bringing in $2.25 billion ($3.37 billion). Despite this growth, the company missed market expectations, causing its stock to dip by 6.7% to $110.90. On the other hand, ANZ (ASX:ANZ) saw a decline in net profit for the 2024 financial year, reporting $6.54 billion, down by 8% from the previous year. Despite the drop in profit, shares in ANZ inched up by 0.5%.
In the property sector, REA Group (ASX:REA) reported a 21% increase in quarterly revenue, amounting to $413 million. However, the company’s shares were down by 0.6%. News Corp (ASX:NWSA) had a positive quarter, with strong revenue and earnings from its real estate investments, and a 1.2% increase in shares, following news that its CFO would step down in January. Mayne Pharma (ASX:MYN) saw shares soar by more than 10%, following reports of a potential acquisition. Vulcan Energy (ASX:VUL) gained 6.8% after starting lithium hydroxide production in Germany.
These developments demonstrate how broader global economic trends, such as rate cuts and stimulus measures, continue to influence Australian stocks across various sectors.
