A strong start to September

The major miners and financials lead the market to its highest level in three months.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) climbed to its highest level in three months to 5,207.7 points this morning, following yesterday's gain of just over 1%.

In early afternoon trading, the index is up 10 points with CMC Markets chief strategist Michael McCarthy stating that "the market is very focused on all the positives", including the 0.7% rise in spot iron ore following positive manufacturing data from both China and Europe. On that news, Fortescue Metals Group (ASX: FMG) has soared 5.2% whilst BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO) are up 1.15% and 2.6%, respectively.

Whilst the news supports a global economic recovery, three of the major banks are also trading up today, with Westpac (ASX: WBC) and NAB (ASX: NAB) leading the way. Each have gained 0.45% and ANZ (ASX: ANZ) is up 0.3%. Commonwealth Bank (ASX: CBA), on the other hand, is down 0.7%.

Although the market has seen gains over the last two days, September and October have typically been the worst performing months out of the year. McCarthy stated that "there are plenty of potential worries on the horizon, including QE tapering, U.S. debt ceiling negotiations, Fed chairman succession, the potential for further problems in Syria and Egypt, German elections and Greece's need for another bailout."

As such, the index could experience a few setbacks in the coming months.

Are you interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »