Insights

Why are ASX 200 resources shares booming again on Friday?

The price of iron ore has rebounded and ASX 200 resource shares are reaping the benefits
The post Why are ASX 200 resources shares booming again on Friday? appeared first on The Motley Fool Australia. –

It’s a good day on the ASX to be a resource investor. The S&P/ASX 200 Resources Index (ASX: XJR) is booming, having gained 2.3% at the time of writing.

For context the S&P/ASX 200 Index (ASX: XJO) is up as well, having increased by 0.93%. Meanwhile, the All Ordinaries Index (ASX: XAO) is also up 0.93%.

Let’s take a look at what’s excited the market over ASX 200 resources shares on Friday.

What’s boosting the sector on Friday?

There are a few interlinking happenings that are likely favourably impacting the ASX’s resource sector.

Firstly – and, perhaps, most importantly – the price of iron ore rebounded overnight.

According to CommSec, while most of Australia slept, the spot price of iron ore surged 5.3% to US$94.20 a tonne.

The resurgence in the steelmaking commodity’s price was due to Chinese developer, China Evergrande Group (HKG: 3333).

The now-infamous developer reportedly managed to stay afloat by making interest payments on 3 bond tranches worth US$148 million.

As The Motley Fool has previously reported, the Evergrande saga has likely spurred concerns about the future of Chinese property developers.

Unsurprisingly, the nation’s building industry is a big consumer of steel, thus, demanding plenty of iron ore.

Which ASX 200 resource shares are soaring?

The biggest mover among the ASX 200 resources sector by far is Gold Road Resources Ltd (ASX: GOR). Its share price has gained 5.3% so far this Friday.

Taking out second and third place is Champion Iron Ltd (ASX: CIA) and Rio Tinto Limited (ASX: RIO), having both gained 3.8% at the time of writing.

Rio Tinto’s fellow iron ore giants are also performing well.

The BHP Group Ltd (ASX: BHP) share price has gained 3%. Meanwhile, that of Fortescue Metals Group Limited (ASX: FMG) is up 3.6%.

However, there are a few sector participants in the red today. Notable fallers include Whitehaven Coal Ltd (ASX: WHC). Its share price is currently down 0.6%.

The post Why are ASX 200 resources shares booming again on Friday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Gold Road Resources right now?

Before you consider Gold Road Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Gold Road Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Calix, Fortescue, Link, and Zip shares are jumping today

ASX 200 (ASX:XJO) midday update: BHP & Fortescue rise, Zip completes acquisition

Fortescue (ASX:FMG) share price climbs 5% as iron ore rebounds

Woodside (ASX:WPL) share price rises amid hydrogen plant land approval

BHP (ASX:BHP) will reap US$1.35 billion from its coal asset sales. Where might the cash go?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!