The share prices of many of the ASX’s leading growth shares like Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have taken off this morning.
What’s Happened?
Over night the share prices of many of the United States’ leading businesses rose, with further share price growth in after hours trade . For example, on Tuesday the Apple stock price rose 3.66%, the Alphabet stock price increased by 1.52%, the Amazon stock price went up by 2.18%, the Facebook stock price grew by 204% and the Microsoft stock price gained 2.77%.
Why did that happen? Well, the US Federal Reserve Chairman Jerome Powell indicated that the Fed would do what was necessary to keep the US economy in working order.
ASX shares have a habit of following what the international share market did over night, so it is perhaps no surprise that many ASX growth shares are up.
The Zip Co Ltd (ASX: Z1P) share price is up 3.7%.
The Afterpay Touch Group Ltd (ASX: APT) share price is also up 3.7%.
The Altium Limited (ASX: ALU) share price is up 3.1%.
The Appen Ltd (SAX: APX) share price has risen 2.9%.
The WiseTech Global Ltd (ASX: WTC) share price is up 2.8%.
The Xero Limited (ASX: XRO) share price is up 2%.
The A2 Milk Company Ltd (ASX: A2M) share price is up 2.7% after yesterday’s painful Chinese-related drop.
If the US Federal Reserve does indeed go ahead and cut interest rates then it arguably pushes up the value of all assets up a little. However, I think it’s important to remember that interest rates are unlikely to remain low forever.
The US Fed may not even decrease interest rates – the comments could simply have been to give people confidence and reassurance.
Whatever happens to the US economy, global economy and Australian economy, I would be glad to have the reliable and proven ASX shares in the free report below in my portfolio.
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Disclosure: Jaz owns shares of Altium at the time of writing, but this could change at any time.