The S&P/ASX 200 index continued its upward trajectory for the third consecutive day on Monday, as global tensions in the Middle East propelled a rally in gold and oil stocks. The index concluded the trading session at 6,970.2, with notable gains observed in the energy, healthcare, and materials sectors, while the IT, staples, and property sectors trailed behind.
Investors exhibited a flight to safety in light of escalating geopolitical unrest, leading to a significant decline in the Australian dollar, which plummeted to an 11-month low of $0.63. Energy giants such as Woodside (OTC:WOPEY) (WDS) and Santos (STO) surged, capitalizing on the rising oil prices. Additionally, gold stocks, including Evolution (EVN), Northern Star, De Grey (DEG), Silver Lake (SLR), West African Resources (WAF), and Newcrest (NCM), shone brightly on the ASX200.
The reopening of Chinese markets following the Golden Week holiday had a pronounced impact on iron ore prices, resulting in a 3% dip in Dalian iron ore futures, and a 1.8% decline in Fortescue shares. Market participants are now awaiting the release of the NAB business survey and Westpac’s monthly consumer confidence data, both scheduled for tomorrow.
In other developments within the market, Qantas reached new yearly lows, while Altium was reassessed for its growth potential. Guzman y Gomez made headlines by signaling a potential initial public offering (IPO). Broker recommendations also influenced various stocks, impacting companies like Steadfast, Amcor (NYSE:AMCR) GDRs, Beach Energy (OTC:BCHEY), Viva Energy, Woodside Energy, CSR, and Bank of Queensland.
Woodside received an upgrade from RBC, while Magellan’s performance experienced a downturn. Meanwhile, broader Asian stock markets displayed mixed performance, with US Futures registering a 0.7% decrease. The recent Hamas attacks in Israel reverberated across global markets, contributing to a surge in oil and gold prices.
