ASX 200 gains, Aussie dollar remains steady

The news: The ASX 200 gained 1.29% to close at 7,279.00. The All Ordinaries gained 1.35%. The Aussie dollar held steady at above 64 US cents.

The numbers: Materials led the way, jumping 2.72%, with FMG gaining 4.26%, BHP gaining 3.69% and Rio Tinto 3.41% on the back of rising iron ore prices. Energy stocks posted higher gains with coalminers in positive territory again with Whitehaven Coal up 4.71% and New Hope Corporation up 2.13%. Woodside gained 1.35%. Information technology clawed back losses earlier this week, up 1.93%, led by Xero up 1.93% and WiseTech Global 2.28%. Financials gained 0.97% with CBA, ANZ, NAB and Westpac all gaining ground.

The context: Fresh data out of China showed industrial output and retail sales grew at a faster pace in August prompting a rise in the gold price. China also sought to boost liquidity, with the central bank saying it would cut the amount of cash banks must hold as reserves for the second time this year. The European Central banks overnight signalled its key interest rate hike to 4% on Thursday would likely be its last.