A strong start to September

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

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.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More on ⏸️ Investing