Afternoon Report Tuesday 20 May 2014
The ASX200 was sold off early in the session, as low as -25 points, only to recover throughout the afternoon to close +11 points at 5,420 points, despite news reports that Australia may lose its AAA credit rating from the S&P.
The change in sentiment was seen after investors digested the RBA May minutes, noting that the "current policy is likely appropriate for some time", i.e. low interest rates. The banking sector bounced on the back of these minutes with CBA closing +27c at $79.83 and ANZ +9c at $32.75.
Fortescue Metals (FMG) surprised investors this morning announcing an additional 1.16Bn tonne of iron ore at one of its mines. FMG closed +17c to $4.54. Iron ore, however, remains weak after falling below the US$100/t resistance level overnight.
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