Last week, it was suggested that due to Scott Morrison’s diplomatic visit to Washington and relative peace and quiet with respect to the trade war, that mining stocks would perform strongly. Nearing the close of Monday 30th September, all of Rio Tinto, BHP, and FMG have recorded positive growth throughout the last three days of trade. This uptick could also be attributed to the export earnings report from the resources and energy sector, which is forecast to hit $282bn this financial year, thus prompting calls for greater investment into mining firms.
The Week Ahead
The Federal Government’s continued reluctance to promote public spending will result in the RBA endorsing an official decrease to the target cash rate yet again on October 1st. The rate cut would see continued upward pressure on asset prices in an attempt to stimulate discretionary spending amongst households and encourage riskier positions amongst investors.