AUSTRALIA’S sharemarket Tuesday broke above 6000
points for the first time since the global financial crisis, pushing
past a psychological barrier amid optimism about the world economy.
The
benchmark S&P/ASX 200 briefly passed 6000 in midday trading, after
failing to breach the level in several attempts over recent years. The
market plunged below 6000 in 2008 as the financial crisis sent
shockwaves through global markets.
“We are going through this transition period — from one which is completely engineered to one now where the market is standing on its own feet,” IG Markets chief strategist Chris Weston told AFP.
Central banks around the world slashed interest rates and pumped huge amounts of cash into the financial system in a bid to boost economic growth after the crisis. But several major central banks have started to wind back their stimulus packages as the pace of economic recovery quickens.
“You are seeing [companies reporting] top-line growth in a number of countries and we are sort of moving away from that central bank kicker, although that is still very much in the market and still helping the situation,” added Weston.
Mining stocks led the way Tuesday amid improving oil and iron ore prices.
“We are going through this transition period — from one which is completely engineered to one now where the market is standing on its own feet,” IG Markets chief strategist Chris Weston told AFP.
Central banks around the world slashed interest rates and pumped huge amounts of cash into the financial system in a bid to boost economic growth after the crisis. But several major central banks have started to wind back their stimulus packages as the pace of economic recovery quickens.
“You are seeing [companies reporting] top-line growth in a number of countries and we are sort of moving away from that central bank kicker, although that is still very much in the market and still helping the situation,” added Weston.
Mining stocks led the way Tuesday amid improving oil and iron ore prices.
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