Miners Lift; USD Falls

S&P/ASX200 7431.1 up 53.3pts (+0.72%)

Market After The Bell

Australian shares experienced an uplift by 53.3pts to 7431.1, propelled by a surge in commodity values, particularly evident in the material sector, which saw a notable increase of 2.1 percent. The rally in the base metals sector ensued after the Federal Open Market Committee's meeting on Wednesday, during which policymakers indicated the potential for rate cuts in 2024. 

Preceding this development, global equities exhibited an upward trend, responding to the Federal Reserve's strategic shift to mitigate the most substantial rate hikes in a generation.

Commodity Rallied

The S&P/ASX 200 experienced a slight increase in early trade, driven by a rally in metals and energy prices. The decline in the US dollar contributed to the upswing in the prices of copper, gold, oil, iron ore, and natural gas. As a result, the materials sector saw a notable addition of 2.1 percent, with Fortescue Metals achieved a historic peak, reaching $28.15, contributing to positive momentum in the broader mining sector. Both mining giants Rio Tinto and BHP experienced gains in response to the favourable market conditions. Additionally, gold miners saw an increase in their stock values, spurred by the rise in the price of gold, which reached $2,052 per ounce in the international market.

Corporate

Sigma, the target of Chemist Warehouse, has observed a 4.8 percent decrease to 99.5 cents as both entities strive to secure approval for their proposed merger. Market analysts remain divided on whether the Australian Competition and Consumer Commission (ACCC) will endorse the merger. On a related note, the regulator rejected a merger proposal earlier in the day involving Healius and Australian Clinical Labs, a pathology group.

Meanwhile, Block, the parent company of Afterpay, surged 4.5 percent in early trading, reaching $111.50, as investors expressed enthusiasm for the announced plans to reduce interest rates in the United States.

Pilbara Minerals, a lithium plays with substantial short positions, experienced a 4.5 percent surge as the price of battery metals rallied.