ASX 200 has explosive start to trading ahead of RBA decision

The ASX 200 has risen by 1.3% in early trading, raising a lot of large caps in its wake. The four major energy shares are among early movers.

asx share price resignation represented by man kicking miniature man through the air

Image source: Getty Images

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

The S&P/ASX 200 Index (ASX: XJO) has leapt up this morning propelled by strong improvement signals in the economy and ahead of the decision by the Reserve Bank of Australia (RBA). In the past 24 hours, the market has received news of rising house prices, increases in new home loans, and a continuing high month-on-month increase in job ads

This has forced up a number of ASX 200 shares by over 4% in this morning's trading. 

ASX 200 shares up in early trading

At the time of writing, the Brambles Limited (ASX: BXB) share price is up by 6.07%. Brambles has announced a 6% increase in revenues for Q1FY21. The company has also updated its FY21 guidance for revenue to 2-4% at constant exchange rates, with an improvement in underlying profits. 

The nation's largest ASX 200 energy companies have all recorded surges of over 4% in the morning's trade. Early reports say that Russia has indicated it may extend the OPEC production costs for an additional three months. Thus increasing the likelihood of cutting the current oil glut. 

At the time of writing, the Woodside Petroleum Limited (ASX: WPL) share price is up by 5.23%, Oil Search Limited (ASX: OSH) is up by 5.51%, Santos Ltd (ASX: STO) is up by 4.73%, and Origin Energy Ltd (ASX: ORG) is up by 4.61%.  

All of these ASX 200 companies have recently delivered Q1FY21 results, with Santos reporting record quarterly production and sales volumes. Moreover, Oil Search recorded an 11.2% increase in sales versus the previous quarter and 16.7% higher than the previous corresponding period in FY19. 

Among others, two ASX 200 real estate companies with exposure to the residential sector, have also seen their share prices rise. Stockland Corporation Ltd (ASX: SGP) is up by 4.01% in the morning's trade. This company has recently reported net quarterly sales of 1,799 residential houses. This is the highest the company has reported for three years.

Meanwhile, Mirvac Group (ASX: MGR) has seen its share price jump up by 3.05%. Q1 leads rose by 34% compared to the previous quarter, placing them above pre-COVID-19 levels. 

Foolish takeaway

At present, the market is expecting the RBA to cut interest rates a further 15-basis points to 0.1 per cent. In addition, there are hopes that it will release a formal statement of quantitative easing.  ASX 200 shares continue to surge at the time of writing. 

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 Daryl Mather has no position in any of the stocks 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 »