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ASX up 0.83% near noon: Bank of Canada cuts rates

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2024-06-06

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Australian shares opened 0.6% higher as US tech gains and the Bank of Canada's rate cut bolstered hopes for global rate reductions. The Bank of Canada cut its cash rate to 4.75%, expressing confidence in inflation returning to 2%. Wall Street's AI-driven momentum extended to the ASX, boosting the local tech sector by 1.7%, while in the US, the S&P 500 hit its 25th record high for 2024, Nasdaq surged to a new peak, and Nvidia led notable gains, surpassing Apple in market valuation.

At 11:35am, the S&P/ASX 200 is 0.83 per cent higher at 7,833.50.

The SPI futures are pointing to a rise of 63 points.

Best and worst performers

The best-performing sector is Industrials, up 1.13 per cent. The worst-performing sector is Staples, up 0.43 per cent.

The best-performing large cap is Mercury NZ Limited (ASX:MCY), trading 5.57 per cent higher at $6.25. It is followed by shares in Northern Star Resources (ASX:NST) and Evolution Mining (ASX:EVN).

The worst-performing large cap is Seek (ASX:SEK), trading 2.31 per cent lower at $23.23. It is followed by shares in Mineral Resources (ASX:MIN) and Rio Tinto (ASX:RIO).

Commodities and the dollar

Gold is trading at US$2384.00 an ounce.

Iron ore is 0.4 per cent lower at US$106.35 a tonne.

One Australian dollar is buying 0.6675 US dollars.

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