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Why ASX 200 shares are at a 6-week high

rising ASX share price represented by paper plane made from news paper
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ASX 200 shares got off to a flier this week after a strong day of trade on Tuesday. The S&P/ASX 200 Index (ASX: XJO) closed up 0.8% at 6,885.9 points as a number of sectors saw strong gains.

Why are ASX 200 shares at a 6-week high?

There were a couple of big themes in Tuesday’s trade. The morning session saw strong gains across resources, technology and more after the Easter break.

Several big-name shares led the benchmark index higher, including Cleanaway Waste Management Ltd (ASX: CWY) and Afterpay Ltd (ASX: APT). The Afterpay share price rocketed 10.0% higher to start the shortened trading week despite no new announcements.

Strong investor sentiment helped propel several big-name ASX 200 shares higher on Tuesday, but the second big factor came in the early afternoon.

New Zealand Prime Minister Jacinda Ardern announced a new trans-Tasman travel bubble at 2pm. That saw ASX travel shares rocket higher as investors reacted well to the news.

The new quarantine-free arrangement will come into effect on 19 April and marks an important step in a return to normality amid the coronavirus pandemic. Australia and New Zealand will stick to a traffic light system for the bubble to encourage travel between the two nations.

That’s good news for the economy, with more jobs and economic spending likely to flow from the bubble arrangement. ASX 200 shares like Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) surged higher on the back of the news.

That, combined with a strong start in the morning session, helped propel ASX 200 shares higher. The S&P/ASX 200 closed at 6,885.9 points – its highest point since Tuesday 16 February this year.

Foolish takeaway

Several sectors saw strong gains in a good start to the trading week today. A number of high-profile ASX 200 shares surged higher on the back of bullish sentiment and a big step forward for the travel industry.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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