• ASX 200 rose to its fourth consecutive day
  • Miners led the bourse as risk sentiment returns
  • Australian wages grew less than expected

 

The rebound in sentiment has been as swift as its drop last week, with the ASX now notching up its fourth consecutive day of gains.

At the close, the ASX 200 index was up around 1%, driven mainly by a broad rally on Wall Street overnight, as well as Mining stocks which rose by over 2% today.

Since last Thursday’s close, the broader index has risen by 3.5%.

Australia’s wage price index came in below expectations, rising by 0.7% in the March quarter to 2.4% VS the 2.5% consensus.

But in real terms (when gauged against inflation), wages have fallen by 2.7% – the worst real wages growth in over 20 years.

The question is now whether the RBA will go for the maximum 40bp increase rate in June, or pace the hikes over time.

The crucial unemployment release is expected tomorrow, which should provide more data points for the RBA to make its decision.

On the ASX, miners caught a bid as a fresh outlook in commodities followed China’s planned easing of lockdowns. Other sectors to rise today include Industrials and Real Estate, while Staples was the worst performer.

 

BIG CAP WINNERS

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Coal miner Stanmore Resources (ASX:SMR) was the best moving large cap today on the back of sentiment, rising by 11% on no news.

Fortescue (ASX:FMG) was up nearly 2%, on news that Andrew Forrest will be appointed Executive Chairman of the Fortescue Group. He will oversee the iron ore business for a transitional period as current CEO Elizabeth Gaines leaves in August.

Bluescope (ASX:BSL) was up 1% after upgrading its full year FY22 guidance to be in the range of between $1.375 billion to $1.475 billion. This is above the prior guidance range of $1.2 billion to $1.35 billion.

 

BIG CAP LOSERS

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Eagers Automotive (ASX:APE) was down 3% following an update on its year-to-date trading performance.

Eagers said its performance has been affected by multiple global events, and now expects Underlying Operating Profit Before Tax for the half year to come in between $183 million to $189 million, as compared to $214.8 million in the pcp.

Boral (ASX:BLD) was also down 3% after revising down its full year earnings guidance, as recent extraordinary rainfall in NSW and Qld has impacted energy prices.

Boral previously said that its full year EBIT would in between $145 million and $155 million, but has now revised that down by around $45 million.