30th May Market Update
Tech shares rally hard to help ASX to three-week high
It was a strong session for rate-sensitive technology and payment firms as the local share market started the week sharply higher.
ASX traders carried Friday’s form into a new week with rate-sensitive technology stocks helping to catapult the local sharemarket to three-week highs.
Block Inc and Zip Co led a sizzling buy now, pay later rally, while tech stocks such as Tyro, Novonix and Xero also rode a wave of inflation relief to take the benchmark ASX 200 103.9 points, or 1.5 per cent, higher to 7286.8.
The broader All Ordinaries gained 109.5 points, also 1.5 per cent, to end the day at 7522.6, while the Aussie dollar continued to rise against the Greenback.
It was buying just under 72 US cents at the local close.
BHP was the biggest lifter among the miners on Monday following news both Shanghai and Beijing had eased Covid-19 restrictions.
Lithium stocks and gold miners were also strong, although coal companies were a rare patch of red.
There were also gains for most of the banks, even if they were outdone by healthcare names and retail conglomerates.
Monday’s bounce was the best single session in two weeks and came after the major Wall Street indices closed out their best week of the year so far.
Encouraging data helped ease inflation fears – and therefore anxiety around future Fed tightening – while still managing to show strength among US consumers.
Tech shares were the main beneficiaries of Friday’s rise, with Telsa rising 7.3 per cent, Amazon up 3.7 per cent, Apple 4.1 per cent higher, and Alphabet gaining 4.2 per cent.
IG Markets analyst Hebe Chen said traders have clearly seen a silver lining in recent data that suggests the economy may be more resilient and self-adjustable than the market expected. However, she said it was too early to say recession concern has dissipated.
“First, none of the data so far is strong enough to convince the Fed to back away from their planned 50 basis-point rate hikes for the next couple of meetings, and don’t forget that they will start culling assets from its $9 trillion balance sheet from June,” Ms Chen said.
Source: NCA NewsWire
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