ASX ready to pounce after Wall Street rebound, Andrew Forrest takes over top job at Fortescue

Australian shares are expected to rise sharply in morning trading after Apple, Tesla and other mega-cap growth stocks led a rebound on Wall Street.

ASX futures had gained 1% to 7,181 points, as of 8:00 a.m. AEST on Wednesday.

The Australian dollar jumped 0.8% to 70.3 US cents.

The broad rally in U.S. stock markets came after weeks of heavy selling that last week saw the S&P 500 plunge to its lowest level since March 2021 and the Nasdaq fall into a bear market.

Recently punished shares of Microsoft, Apple, Tesla and Amazon rose 2% to 5.1%, dragging the S&P and Nasdaq higher.

The S&P 500 climbed 2% to end the session at 4,089 points.

The Nasdaq closed 2.8% higher at 11,985 points, while the Dow Jones rose 1.3% to 32,655.

The Fortescue leadership reshuffle

Fortescue Metals founder Andrew Forrest will take on a more “hands-on” role at his company, as part of a major shake-up of his management team.

A grey-haired Andrew Forrest in a bright yellow work shirt speaks with a mining site behind him.
Andrew Forrest will serve as executive chairman of Fortescue for an interim period.(PA: Justin Benson-Cooper)

As executive chairman, the mining billionaire will once again lead the company’s iron ore business, for the first time in more than a decade.

Dr Forrest will temporarily replace outgoing chief executive Elizabeth Gaines, who announced her intention to step down from senior management in December, until a permanent replacement is found.

Ms. Gaines will remain on Fortescue’s board of directors and become the “global brand ambassador” for the company’s green energy business, Fortescue Future Industries (FFI).

Former General Electric executive Mark Hutchinson will become FFI’s new CEO.

Former AGL Energy CEO Andrew Vesey has been named head of FFI’s energy transition projects.

Guy Debelle, the former deputy governor of the Reserve Bank, will assume the role of chief financial officer of FFI in June.

Wage growth could lead to ‘oversized’ rate hike

The Australian dollar could get a “modest boost” if today’s wage growth data is stronger than expected, said Carol Kong, currency strategist at Commonwealth Bank.

Post , update

Leave a Reply