The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) climbed to its highest level in three months to 5,207.7 points this morning, following yesterday's gain of just over 1%.
In early afternoon trading, the index is up 10 points with CMC Markets chief strategist Michael McCarthy stating that "the market is very focused on all the positives", including the 0.7% rise in spot iron ore following positive manufacturing data from both China and Europe. On that news, Fortescue Metals Group (ASX: FMG) has soared 5.2% whilst BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO) are up 1.15% and 2.6%, respectively.
Whilst the news supports a global economic recovery, three of the major banks are also trading up today, with Westpac (ASX: WBC) and NAB (ASX: NAB) leading the way. Each have gained 0.45% and ANZ (ASX: ANZ) is up 0.3%. Commonwealth Bank (ASX: CBA), on the other hand, is down 0.7%.
Although the market has seen gains over the last two days, September and October have typically been the worst performing months out of the year. McCarthy stated that "there are plenty of potential worries on the horizon, including QE tapering, U.S. debt ceiling negotiations, Fed chairman succession, the potential for further problems in Syria and Egypt, German elections and Greece's need for another bailout."
As such, the index could experience a few setbacks in the coming months.
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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.
