Shares of the Australian stock exchange has exceeded the barrier of 6000 points this week. And this is the highest level in the stock market since the end of the global financial crisis.
The Australian stock market closed with more than 6,000 points on the second consecutive day. At the same time, analysts warn that it is still too early to predict. They are not sure whether the market will be able to improve its positions at higher rates. The benchmarks for this week’s success were shares of the New York, London, and Tokyo stock markets.
According to the shares statistics in the Australian stock market for November 7, the shares of S&P / ASX200 reached the highest point since the fall during the global financial crisis. The value was 6016 points.
It helped the market to compensate for the negative impact on mining stocks due to falling commodity prices. For example, the Australian Commonwealth Bank received 2.65% after it reported an increase in quarterly profit to 2.65 billion dollars.
Investors in Australia were supported by influential leaders from the US and other major markets. For the first time, the world index MSCI reached the mark of 500 points. It also applies to a series of high records on the Wall Street and the rally on Monday in London. On the same day, the Japanese company Nikkei also rose above its highest level in the last 25 years.
In the US, profits from companies such as Apple, Amazon, Caterpillar, Mastercard, BP and Goldman Sachs prevailed all concerns about the Trump’s presidency and the tense situation in North Korea.
The CMC Markets Analyst’s Opinion
The chief market analyst at CMC Markets, Rick Spooner, said that rising oil and iron ore prices had become a key driver of changes in the stock market this week. Although, in his opinion, it is unlikely that this will spread to all the shares of the Australian stock exchange.
Also, Rick Spooner noticed the following thing. As traders repeatedly remind themselves, markets often had to check the limits of the trading range, making their way through it. It happened several times, as the ASX 200 made small breaks below the limit of the trading range. After that, there was a significant jump in stocks up.
Despite the fact that the ASX 200 only a little bit expanded its area of influence, it was marked by a large volume of trades with the maximum value during the day. This often indicates a continuing impulse, which can also be observed in the coming days. And this shows the renewal of trust. “Time will tell,” Rick said at the conclusion.
On November 7 the Reserve Bank of Australia decided to leave the rate unchanged, which caused a positive impact on the Australian dollar. However, the Australian dollar’s rate is still lower than the American’s one.
The success of the Australian stock exchange made investors take thought buying shares of the country. Follow the news, and invest only in profitable projects. Learn and embody your ideas!