The Australian market finished an impressive 1.6% today with a range of factors combining to lift the market.
Most important was the reassurance from Janet Yellen overnight, covered in detail earlier, that there’s no likely rate hike coming in the US any time soon. Globally, the concerns about a massive destabilisation in Iraq are subsiding.
Iron ore prices ticked up a little overnight after consistent slides, which has driven big gains in the miners. Fortescue is up more than 5%. Index futures also expired today.
Michael McCarthy, chief market strategist for CMC Markets said Australian investors enjoyed the best one day performance of 2014 today.
“Against a backdrop of recent data that shows a steady economy in China and an accelerating recovery in the US, a dovish report from the Fed and strong commodity markets combined to lift all the boats.
“Mining stocks led, but a clear investor appetite for growth meant energy, industrial and finance stocks all had a day in the sun. As a further sign of investor confidence, an absence of demand for options saw the local volatility index hit an all-time low during the session,” he said.
Here’s the chart from the past five days on the ASX, via investing.com.
Now let’s see how the week ends!