The Australian share market has enjoyed its strongest single-day rise in five weeks after the US Federal Reserve suggested that it might raise interest rates later than the market had expected. While the Dow Jones and NASDAQ indices both rose strongly overnight, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has surged 97 points, or 1.7% higher.
However, a number of stocks are performing significantly better than the general market, including these four.
Newcrest Mining Limited (ASX: NCM) shares climbed 5.6% after spot gold prices rallied overnight. According to The Australian Financial Review, the precious metal rose 1.6% to US$1,166.90 an ounce after the Federal Reserve signalled a more cautious outlook for US economic growth. Gold is traditionally seen as a hedge against inflation and is often purchased in the face of economic uncertainty.
Monadelphous Group Limited (ASX: MND) shares have surged 6.6% higher to be trading at $11.16, despite the absence of any specific news to explain the jump. In fact, the mining services group was issued a "please explain" by the ASX yesterday after having risen 27% in the last few trading days, although it wasn't aware of any reason for the recent trading activity either. Regardless, Monadelphous is still one to avoid given the strong headwinds facing the mining services sector.
Cover-More Group Ltd (ASX: CVO) has jumped 3.8% with its shares now trading at $2.03. While the stock is still trading well below its 52-week high level, it's likely that it is benefiting from the rallying Australian dollar. A stronger currency could provide a much needed boost for outbound travel levels, which would benefit the travel insurance group.
Senex Energy Ltd (ASX: SXY) has lifted 6.8% after a strong rise in oil prices overnight. While oversupply concerns have been weighing heavily on the resource's price lately, the weaker US dollar could help boost demand (given that oil is priced in US dollars). The stock is now trading at 31.5 cents per unit.
