News that the Chinese government was committed to supporting a slowing economy with economic stimulus was enough to drive both All Ordinaries (ASX: XAO) and S&P/ASX 200 (ASX: XJO) to a 0.5% gain on Tuesday.
Both the materials and energy sectors did all the heavy lifting, gaining 2.7% and 1.2%, respectively. It was all about iron ore, on hopes that stimulus will be directed to infrastructure and property construction spending, with Fortescue Metals Group Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP) shares finishing 4.6% and 3.3% higher, respectively.
Pilbara Minerals Ltd (ASX: PLS) was the top-performing stock, gaining 5.2% while the energy sector also benefitted from hopes of faster global growth, as the Woodside Energy Group Ltd (ASX: WDS) share price rallied 1.2%.
Most of the weakness came from the consumer discretionary sector, with both Wesfarmers Ltd (ASX: WES) and Domino’s Pizza Enterprises Ltd (ASX: DMP) dropping after news that their US counterparts had seen slowing sales growth across their store network.
Monadelphous Group Ltd (ASX: MND) secures $200 million contract, Vanguard hit with greenwashing claim
Shares in mining services provider Monadelphous Group Ltd surged to a 5.4% gain after the group confirmed it had secured a contract with lithium miner Albemarle.
The $200 million deal will support the expansion of Monadelphous’ Kemerton lithium hydroxide plant in Western Australia, including two new processing trains.
Index manager Vanguard has been hit with a claim of greenwashing by the corporate regulator, with ASX alleging the group’s label did not reflect the underlying investments. It refers to the ‘ethical bond fund’ which, according to the claim, potentially held a number of questionable fossil fuel investments.
US stocks move higher, Alphabet earnings ahead
The Dow Jones Industrial Average (INDEXDJX: .DJI) extended its winning streak to a 12th straight day, albeit only slightly, gaining 0.1% while the Nasdaq Inc (NASDAQ: NDAQ) and S&P 500 (INDEXSP: .INX) outperformed, increasing by 0.6% and 0.3% on a strong day of earnings.
All three benchmarks are now up over 5% for the month, with investors looking to the next Fed rate decision for more direction.
The General Electric Co (NYSE: GE) stock price jumped by more than 6%, nearing a five-year high, after reporting double-digit growth in orders, revenue and operating profit, sending revenue 18% higher.
Both Taneja Aerospace and Aviation Ltd and IND Renewable Energy Ord Shs were particular highlights, as sales surged 28% and 18%, respectively.
In a positive sign for Telstra Group Ltd (ASX: TLS), Verizon Communications Inc. (NYSE: VZ) gained close to 1% after the group managed a small gain in new subscribers, albeit only 8,000 which came after a simplification of their business offerings. Both profit and revenue slowed slightly on the prior quarter.