ASX 200 has explosive start to trading ahead of RBA decision

The ASX 200 has risen by 1.3% in early trading, raising a lot of large caps in its wake. The four major energy shares are among early movers.
The post ASX 200 has explosive start to trading ahead of RBA decision appeared first on Motley Fool Australia. –

asx 200 start represented by man kicking miniature man through the air

The S&P/ASX 200 Index (ASX: XJO) has leapt up this morning propelled by strong improvement signals in the economy and ahead of the decision by the Reserve Bank of Australia (RBA). In the past 24 hours, the market has received news of rising house prices, increases in new home loans, and a continuing high month-on-month increase in job ads

This has forced up a number of ASX 200 shares by over 4% in this morning’s trading. 

ASX 200 shares up in early trading

At the time of writing, the Brambles Limited (ASX: BXB) share price is up by 6.07%. Brambles has announced a 6% increase in revenues for Q1FY21. The company has also updated its FY21 guidance for revenue to 2-4% at constant exchange rates, with an improvement in underlying profits. 

The nation’s largest ASX 200 energy companies have all recorded surges of over 4% in the morning’s trade. Early reports say that Russia has indicated it may extend the OPEC production costs for an additional three months. Thus increasing the likelihood of cutting the current oil glut. 

At the time of writing, the Woodside Petroleum Limited (ASX: WPL) share price is up by 5.23%, Oil Search Limited (ASX: OSH) is up by 5.51%, Santos Ltd (ASX: STO) is up by 4.73%, and Origin Energy Ltd (ASX: ORG) is up by 4.61%.  

All of these ASX 200 companies have recently delivered Q1FY21 results, with Santos reporting record quarterly production and sales volumes. Moreover, Oil Search recorded an 11.2% increase in sales versus the previous quarter and 16.7% higher than the previous corresponding period in FY19. 

Among others, two ASX 200 real estate companies with exposure to the residential sector, have also seen their share prices rise. Stockland Corporation Ltd (ASX: SGP) is up by 4.01% in the morning’s trade. This company has recently reported net quarterly sales of 1,799 residential houses. This is the highest the company has reported for three years.

Meanwhile, Mirvac Group (ASX: MGR) has seen its share price jump up by 3.05%. Q1 leads rose by 34% compared to the previous quarter, placing them above pre-COVID-19 levels. 

Foolish takeaway

At present, the market is expecting the RBA to cut interest rates a further 15-basis points to 0.1 per cent. In addition, there are hopes that it will release a formal statement of quantitative easing.  ASX 200 shares continue to surge at the time of writing. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 has explosive start to trading ahead of RBA decision appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!