Why the Amcor and Brambles share prices could rise on a rate cut today

Both the Brambles Limited (ASX: BXB) and Amcor PLC (ASX: AMC) share prices are up in early trading today. Will they go higher on RBA rate cut news?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Both the Brambles Limited (ASX: BXB) and Amcor PLC (ASX: AMC) share prices are up in early trading today. Amcor was up more than 1.5% in the first couple hours of trading, and Bramble's share price rise wasn't far behind.

With both companies' share prices having declined over the last 6 months, and neither having released any particularly exciting news to the ASX recently, why today's rise? Is this the first hint of a turnaround, or just a blip?

Stand-ins for trade and growth

Brambles and Amcor are 2 companies that are highly dependent on external economic activity for their own revenue. Now, that can be argued about a lot of stocks, but it's particularly true for these 2 providers of packaging and shipping material.

Brambles specialises in management of pallets, crates and containers. The company provides pallets, reusable crates, produce containers and logistics software as a service in 60 countries, including the US, Australia and throughout the Asia-Pacific region.

Amcor, meanwhile, is a packaging company encompassing everything from food and beverage containers, to medical device and pharmaceutical packaging.

As you can probably imagine, given the only products produced by these 2 companies is the packaging used to ship or sell other companies' products, both are highly dependent on the fluctuations of global trade and economic activity.

Cautious optimism worldwide

With the Reserve Bank of Australia (RBA)'s Board meeting this afternoon, most investors are expecting an interest rate cut. If correct, this will likely take Australian interest rates to a new record low of 0.75%.

Low rates are a response to a sluggish economy, and with Australia's construction industry sluggish, lower rates make sense.

However, the horizon doesn't look entirely bleak. Property prices rebounded strongly last month, which could spell an end to the pain coming for the construction industry. Stronger than expected domestic consumption figures in China could be a positive sign for international trade, and the Dow Jones and Nasdaq indices in the US rose overnight.

The US and Chinese governments' rhetoric on trade conflicts remains antagonistic. However, investors seem to be betting that strong words now are at least partly for show, and that tensions will be relaxed as the two nations head back into talks on 10 October.

With both coming with a dividend yield over 2.5%, Amcor and Brambles could be good choices for income and growth if the RBA cuts interest rates again this afternoon.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tyler Jefferson has no position in any of the shares mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »