ASX 200 materials shares recorded the highest gains of the market sectors last week, rising 5.24% primarily due to the major miners.
It was one of the strongest weeks for the S&P/ASX 200 Materials Index (ASX: XMJ) in many months.
S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) shares also rose sharply, up 3.78% amid evidence of higher household spending.
The S&P/ASX 200 Index (ASX: XJO) soared 1.68% to close out the week at 8,807.1 points.
The benchmark index reached a new record of 8,848.8 points in intraday trading on Wednesday.
There is market excitement about an anticipated interest rate cut next week when the Reserve Bank Board meets on Monday and Tuesday.
Ten of the 11 market sectors finished the week in the green.
Let's recap.
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ASX 200 mining shares flew last week
The giants of the ASX 200 materials sector are the iron ore miners, so their performance contributes significantly to the materials sector.
While the ASX 200 Materials Index lifted 5.24%, the more concentrated S&P/ASX 300 Metal & Mining Index (ASX: XMM) rose 5.49%.
This reflects the particularly strong week for mining companies compared to other ASX 200 materials shares.
Last week, the big three miners surged on the back of an improved iron ore price.
The commodity was up 2.11% for the week, at the time of writing.
The BHP Group Ltd (ASX: BHP) share price rose 2.52% to finish the week at $40.21.
The Fortescue Ltd (ASX: FMG) share price increased 4.84% to close at $18.85 on Friday.
Rio Tinto Ltd (ASX: RIO) shares lifted 2.45% to $113.62 apiece.
The ASX 200 gold miners had a phenomenal week amid a strengthening gold price.
The S&P/ASX All Ordinaries Gold Index (ASX: XGD) skyrocketed 12.91% last week.
The biggest ASX 200 gold miner, Northern Star Resources Ltd (ASX: NST), ripped 18.17% higher to finish at $18.08 per share.
The Evolution Mining Ltd (ASX: EVN) share price flew 8.65% to $7.66 on Friday.
Newmont Corporation CDI (ASX: NEM) shares rose 10.79% to $106.68.
Let's talk commodity prices
The miners had a great run last week due to stronger commodity prices.
Trading Economics analysts said the iron ore price rose last week amid "signs of resilient demand".
The commodity is now up by almost 6% over the past month.
The analysts commented:
Solid profitability in China's steel sector is encouraging mills to ramp up production, bolstering demand for iron ore.
The strength in prices also comes as Beijing steps up efforts to curb excess steel production capacity.
Gold and silver commodity prices also rose by 0.75% and 2.88%, respectively, over the week, according to Trading Economics data.
Trading Economics analysts said the gold and silver prices rose due to uncertainty over US tariffs, which came into effect last week.
You can view a finalised list of the US tariffs here.
The analysts said tariffs on 1kg and 100-ounce gold bars to reduce reliance on imports "may tighten domestic supply and lift prices".
They noted that China extended its gold purchases for a ninth consecutive month in July.
The analysts said there was extra demand for precious metals due to "expectations of a more dovish US monetary policy" as well.
Over the past month, the gold price has lifted 2.3% and the silver price has risen 4.7%.
What about other ASX 200 materials stocks?
The materials sector also incorporates companies supplying chemicals, industrial gases, construction materials, and product packaging.
The largest non-mining share in the materials sector is building materials supplier James Hardie Industries plc (ASX: JHX).
The James Hardie share price lifted 6.96% to $42.90 last week.
BlueScope Steel Ltd (ASX: BSL) shares rose 1.51% to $23.73 per share.
Shares in explosives company Orica Ltd (ASX: ORI) lifted 1.69% to $21.66. Orica was one of 15 stocks to hit multi-year highs on Friday.
Shares in plastics packaging company Amcor CDI (ASX: AMC) inched up 0.68% to $14.74.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Materials (ASX: XMJ) | 5.24% |
| Consumer Discretionary (ASX: XDJ) | 3.78% |
| A-REIT (ASX: XPJ) | 2.89% |
| Utilities (ASX: XUJ) | 1.93% |
| Energy (ASX: XEJ) | 1.91% |
| Communication (ASX: XTJ) | 1.27% |
| Information Technology (ASX: XIJ) | 1.04% |
| Consumer Staples (ASX: XSJ) | 0.8% |
| Financials (ASX: XFJ) | 0.28% |
| Industrials (ASX: XNJ) | 0.19% |
| Healthcare (ASX: XHJ) | (0.97%) |
