The Australian stock market continued its upward trajectory on Monday, with the ASX gaining +0.6% following weaker than expected job numbers in the US. The rally was fueled by expectations of a Fed rate cut in September, with interest rate-sensitive tech and real estate stocks leading the charge.
Qantas (ASX:QAN) made headlines for the wrong reasons, as the airline giant was slapped with a $120 million penalty for its “ghost flights” fiasco. The company admitted to tricking passengers into boarding non-existent flights and will compensate affected passengers with an additional $20 million.
On the mining front, iron ore miners like Fortescue Metals (ASX:FMG) and BHP (ASX:BHP) saw gains on the back of a higher iron ore price in Singapore.
In other news, Chinese shares led the pack in Asia, with traders returning after a holiday break. Chinese President Xi Jinping’s visit to France to discuss trade with Europe also grabbed attention.
Former RBA Governor Phil Lowe painted a gloomy picture, suggesting that Aussie rates might actually rise due to inflation. The RBA is currently in a two-day meeting with a rates decision expected tomorrow.
Small cap leaders like Reach Resources, Thrive Tribe Tech, and Mount Ridley Mines saw significant gains, while companies like Prodigy Gold and IXUP made positive strides in their respective industries.
Overall, the Aussie market experienced a mix of gains and losses, with companies making headlines for both positive and negative reasons. Stay tuned for more updates as the trading week progresses.
