Investing.com - The S&P/ASX 200 index added 42.4 points or 0.6% to 7,603.6 and edging closer to surpassing its record high following a surge in iron ore prices, the country's primary export.
The benchmark index is just 25 points shy of the record set in August 2021, thanks to a spike in steel-making commodity prices and growing enthusiasm for ASX's iron ore giants as China's policy measures stimulate the market.
BHP Group Ltd (ASX:BHP) saw a 1% rise to $50.78, while fellow iron ore producer Fortescue Metals Group Ltd (ASX:FMG) experienced a 2% increase to $29.11, and Rio Tinto (ASX:RIO) was up 1.1% to $136.59.
The Australian dollar continued its ascent, hitting a new five-month high of US68.51¢, and is set to conclude the year 0.5% higher. Over the past two months, the Aussie dollar has reversed all its 2023 losses as the US dollar rally unwinds, spurred by an impending policy shift from the US Federal Reserve.
On Wall Street, the S&P 500 ended trading just 0.5% short of its all-time high of 4796.6, closing at 4781.6. US stocks had a somewhat shaky performance as they neared a record, fueled by speculation that the Fed might cut interest rates in 2024.
The US 10-year Treasury yield, a global benchmark for borrowing, fell to around 3.8% — its lowest level since July.
In commodities, crude oil pulled back from its highest close in nearly a month, with support from Red Sea (NYSE:SE) attacks wavering and key technical indicators showing weakness. Brent crude dropped 1.8% to $US79.58 a barrel.
In other news, shipping giant Hapag-Lloyd's shares fell 2.8% after the German company announced it would avoid the Red Sea, despite the launch of a US-led taskforce to protect this crucial trade route from militant attacks.
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