The S&P/ASX200 is lower today, dropping 44.1 points or point 62% to 7,117.50 after setting a new 52-week high but On Monday, the benchmark index made a new all-time high of seven thousand, two hundred and three point three, surging past the 7,200-mark for the first time. However, the market faced some selling pressure from the higher levels and closed at point 25 per cent.
Benchmark iron ore futures on the Dalian Commodity Exchange for September’s delivery surged 5.2 per cent to 1,106 yuan per tonne after the market recorded heavy losses in the last few weeks amid China’s vow to stabilise surging commodity prices. The manufacturing purchasing managers index, or PMI, compiled by IHS Markit, a financial data group, reached 60.4 in May, on a seasonally adjusted basis, up from 59.7 in April.
Stock markets move based on future estimates, at least that is what the bull lobby says. So, if markets are rallying today, they would be anticipating a good earning six months down the line.