The ASX 200 (INDEXASX: XJO) was led 0.3% lower today despite a lift from mining shares, including BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), and IOOF Holdings Limited (ASX: IFL) rising.
BHP Group & Rio Tinto Rise On Iron Ore Prices
BHP and Rio Tinto are world-leading resources companies with a big share of the iron ore market.
This morning, Iron ore prices rose around 5.5% following a boost in expectations that China, the world’s largest steel producer, could implement new measures to stimulate their economy.
“The Chinese politburo once again mentioned a boost to infrastructure spending as a way of supporting growth next year,” ANZ Senior Commodities strategist Daniel Hynes said.
IOOF Holdings Gets APRA Greenlight
Yesterday evening embattled financial services business IOOF Holdings received the go-ahead to acquire ANZ’s OnePath business from Australian bank and insurance watchdog, APRA.
IOOF is a diversified financial business that offers a variety of services to clients including financial advice, platform management & administration, investment management and trustee services.
Yesterday evening after the market’s close IOOF said this was the last regulatory approval needed to transfer the business across.
“APRA’s approval represents an important milestone and allows for the creation of an industry leading advice-led wealth management organisation,” IOOF CEO Renato Mota said.
“We look forward to continue to challenge ourselves to deliver accessible, advice-led wealth management for the benefit of all Australians.”
The deal is expected to complete by the end of January 2020.
Finally, Qantas Airways Ltd (ASX: QAN) shares ended the day higher despite its low-cost subsidiary Jetstar facing strikes from workers.
Fairfax Media believes the airline is preparing to make changes to flights planned for January as pilots threaten to walk off the job as wage negotiations continue.
