Miners lead ASX gains as US Fed chair comments spur global metal markets
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The news: Mining giants Fortescue, BHP and Rio Tinto were among the best performers on the ASX 200 today after US Federal Reserve chair Jerome Powell signalled that the central bank is on course to cut interest rates in September.
The numbers: Fortescue (+3.1%), BHP (+3%) and Rio Tinto (+2.8%) were all higher at 2:30pm AEST, taking the wider materials sector up 2.9%. The benchmark S&P/ASX 200 index was up 0.2%.
Iron ore futures climbed 1.7% to USD102.25 a tonne on the Singapore exchange. All metals on the Shanghai exchange also climbed.
The price moves saw Australia's largest gold miners Northern Star (+3.5%), Evolution Mining (+3.4%) and Newmont (+1.4%) progress. Smaller rivals Regis Resources (+8.4%) and Ramelius Resources (+6.3%) saw even larger jumps.
Other mining heavyweights Mineral Resources (+4.8%), Pilbara Minerals (+3.8%) and South32 (+3.5%) also rallied, with the prospect of lower rates increasing the chances of a weaker US dollar, and making metals cheaper for buyers using other currencies.
The source: Bloomberg
