What a start to the week.
The ASX took off like a rocket at the open this morning. It rose 1 per cent in minutes back into 5,200 territory. (See the chart below.)
AMP Capital chief economist Shane Oliver says the gains are higher than expected.
“I was thinking it would be about 20 points but obviously it’s a bit more”.
The ASX may be playing catch up with the US says Mr Oliver, after the Dow and S&P 500 to fresh all-time highs on the back of upbeat economic news at the end of last week.
Record low Australian interest rates, a falling Australian dollar and improving sentiment on China are also adding support.
“The low Australian dollar is adding a bit of optimism given a high Australian dollar has been a bit of a drag.”
“Record low domestic interest rates are putting pressure on Australian investors to put money into yield baring stocks amid ongoing expectations lower interest rates and a lower dollar will support the market over the next year.”
Here’s the chart to a bit after 11.15am AEST this morning – Friday’s close into Monday’s huge open – via investing.com.