Iron ore stocks that drive ASX higher



The risk appetite received a blow in the arm overnight – and from two sources. The first came from ECB President Mario Draghi, during a speech given yesterday evening at the ECB's monetary policy forum, in which he stated that its central bank would be ready to cut rates, or even deliver a new round of quantitative tightening, if the inflation target of Europe continues to fail.

The second, perhaps most significant, news came thanks to a tweet from US President Donald Trump, who officially announced will meet Chinese President Xi Jinping for an "extended" meeting at the next G20 summit.

Bond yields have plummeted because of Draghi's developments in particular, while the actions responded favorably to both that news and Trump's tweet. The DAX rose 2.03% in European trade, as yields on 10-year German Bunds fell to -0.32% and the euro returned to 1.11.

The S & P500 index added over 1%, driven by cyclical stocks and technology stocks, with the USD slightly higher. Commodities rose on the hope of an improvement in the global economic outlook, sustaining a rise in the AUD. While The ASX200 should skip this morningwith SPI Futures it aims for a gain of around 40 points at today's opening.



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