The Australian Securities Exchange (ASX) is poised for a potential resources-led rally, according to Moomoo Australia market analyst Michael McCarthy. This forecast comes as metals prices remain strong, potentially boosting global mining stocks. With US markets closed for Labour Day, Asia-Pacific markets, including Australia, are expected to operate independently. Moomoo Australia is an online trading platform providing access to financial markets. It equips users with tools and resources for informed investment decisions.
McCarthy noted that gold has continued its upward trend, iron ore has risen, and copper prices have remained stable. Significant gains were observed in silver (up 2.4 per cent), platinum, and palladium (both up 4 per cent). The rise in oil prices (up 1 per cent) is also expected to contribute positively to the sector. He suggested that diversified extractors like South 32 could be a focal point, while global miners such as BHP and Rio Tinto are also likely to receive support.
Local trading activity continues to reflect the impact of the reporting season, with investors shifting towards stronger-performing stocks. Attention is also turning to the upcoming GDP data due on Wednesday, which is anticipated to reveal an acceleration in Australian economic growth from 1.3 per cent in the first quarter to an annual rate of 1.6 per cent in the second quarter.
McCarthy cautioned that the narrative of an improving economy is crucial to the recent record highs in Australian shares. Therefore, a lower-than-forecast GDP reading could potentially undermine investor optimism and affect market performance. Traders are therefore carefully considering positions in anticipation of this key economic data release.
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