ASX strengthens on shutdown optimism and sector gains
The Australian sharemarket rallied at the start of the week, buoyed by optimism that the US government shutdown may soon conclude. The S&P/ASX 200 Index (ASX: XJO) surged 66.2 points to close at 8835.90, marking its strongest daily performance in four weeks. Investor sentiment improved amid a broader global risk-on mood as the US Senate advanced a funding bill. Nine of the eleven ASX sectors ended higher, led by technology. Life360 Inc. (ASX: 360) rose 3.6 per cent to $48.32, WiseTech Global Limited (ASX: WTC) jumped 6.2 per cent to $70.25, and Codan Limited (ASX: CDA) added 1.4 per cent. Meanwhile, rising oil prices pushed Woodside Energy Group Ltd (ASX: WDS) up 1.2 per cent to $26.14.
Gold and mining stocks benefit from Fed speculation
Gold miners also gained ground as gold prices advanced on expectations of a possible interest rate cut from the US Federal Reserve. Evolution Mining Limited (ASX: EVN) and Perseus Mining Limited (ASX: PRU) both climbed 3.9 per cent, while Northern Star Resources Limited (ASX: NST) rose 3.5 per cent. In financials, Australia and New Zealand Banking Group Limited (ASX: ANZ) rallied 3.2 per cent to a record $37.98 despite posting weaker cash profits, while Westpac Banking Corporation (ASX: WBC) added 1.4 per cent. However, Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Limited (ASX: NAB) ended in negative territory. Among notable movers, Downer EDI Limited (ASX: DOW) hit a five-year high following a $750 million contract with Chevron Australia, while Monadelphous Group Limited (ASX: MND) soared 11 per cent on a strong trading update.
Global equities rally as US shutdown relief lifts sentiment
Global markets began the week positively, led by Wall Street gains after the US Senate advanced a funding measure to potentially end the 40-day government shutdown. The S&P 500 Index (NYSEARCA: SPY) rose 1.6 per cent, the Nasdaq Composite Index (NASDAQ: IXIC) gained 2.4 per cent, and the Dow Jones Industrial Average (INDEXDJX: DJI) added 415 points. AI-related technology stocks led the rally, with NVIDIA Corporation (NASDAQ: NVDA) up 5.8 per cent, Palantir Technologies Inc. (NYSE: PLTR) up 8.8 per cent, Advanced Micro Devices Inc. (NASDAQ: AMD) up 4.5 per cent, and Micron Technology Inc. (NASDAQ: MU) up 6.5 per cent. Commentary from Federal Reserve Governor Stephen Miran supporting a potential 50 basis point rate cut in December helped boost risk assets. However, the shutdown still poses a risk, as delayed economic data and pending House approval could impact market stability.