ASX continues rebound as financials, consumer stocks gain
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket finished higher on Monday, extending Friday's rebound after the three major US indices finished last week with record closing highs. The benchmark ASX 200 gained 0.75% to 7,476.60, while the All Ordinaries lifted 0.65%.
The numbers: Nine of the 11 sectors finished higher on Monday, with utilities and materials edging 0.2% lower as commodity prices waned and the People's Bank of China kept key loan rates on hold, stymying hopes of further Beijing stimulus and improved demand from the world's second-largest economy.
Financial stocks rallied 1.2% as top tier banks and insurers posted solid performances. Consumer discretionary (+1.7%) and consumer staples (+1.3%) stocks also rose, while industrials gained 1.1%.
The Aussie dollar is buying 65.9 US cents but is in a broader downtrend against the greenback, losing more than 3.5% since the start of 2024.
The context: This week is a big one for monetary policy and macro data, with several central banks setting policy rates, starting the Bank of Japan tomorrow. US GDP data and personal consumption expenditure (PCE) price index data will follow later in the week, along with manufacturing and services purchasing managers' index PMI figures for several major EU economies. PCE is the US Federal Reserve's preferred inflation measure, because it tends to be less affected by short-term price moves.
There are also some big names delivering quarterly earnings, including Tesla, Visa, Johnson and Johnson, Netflix, Intel, Morgan Stanley and IBM all posting results this week.
