It's been a particularly strong day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Wednesday. At the time of writing, the ASX 200 has gained a healthy 0.85%, dragging the index back over 7,400 points. But let's talk about the Fortescue Metals Group Limited (ASX: FMG) share price.
While it's been a good day for the ASX 200, it has been a great one for Fortescue shares. This ASX 200 mining share has rocketed a chunky 2.56% at present up to $23.80 a share.
What's more, the iron ore heavyweight hit a new 52-week high of $23.87 a share earlier this morning. Not only is that a new 52-week high for the Fortescue share price, but it is also the highest this miner has traded at in over two years.
Yep, you'd have to go back to April 2021 to find the last time Fortescue was going for this close to $24 a share:
So what's going on here? Why is the Fortescue share price having such a memorable day this Wednesday?
Image source: Getty Images
Why did the Fortescue share price just touch a new 2-year high?
Well, it's not immediately clear. There hasn't been any fresh news or announcements out of the miner itself that could explain today's optimism.
Of course, we could look to the price of iron ore – Fortescue's major commodity – for an explanation. Iron ore is indeed having a stellar time of it. At the latest pricing, the industrial metal is up 1.94% to US$114.80 per tonne.
This alone could explain investors' optimism over Fortescue shares.
But there's another possible factor here. As many investors would be aware, China's economy hasn't been doing too well as of late. But according to reporting from Business Insider, China's leadership has pledged to increase stimulus to help combat a downturn in growth.
The Chinese government's Politburo reportedly acknowledged that the country "is facing new difficulties and challenges". But the body also stated that it intends to launch stimulatory measures to combat these challenges "with precision and force".
China is a major buyer of Australian iron ore, and any uptick in the country's economy could result in additional demand for Australian iron. So perhaps this news is also lifting ASX investor sentiment on the Fortescue share price today.
Whatever the underlying reason, there's little doubt that Fortescue share investors will be delighted with what they are seeing on the share market today.
