The A2 Milk share price just hit a 52-week high. What’s going on?

The A2 Milk Company Ltd (ASX: A2M) share price is giving investors something to cheer about on Thursday.

Moments after the opening bell, shares in the infant formula and alternative milk company began to make strides to the upside. After a steady stream of new 52-week highs throughout November, the new month has kept the trend going.

At the time of writing, the A2 Milk share price is fetching a flavoursome $6.31 per share. However, buying pressure inched the value as high as $6.36 earlier today — setting the new glass ceiling to break.

What’s fuelling the appetite for A2 Milk shares?

The last price-sensitive announcement from the milk brand was almost a month ago. As such, it is unlikely that investors are craving more A2 Milk in their portfolio on the back of company-specific news.

Instead, there’s a good chance the 52-week record high is a byproduct of improved sentiment across the board. For reference, the S&P/ASX 200 Index (ASX: XJO) is feeling the good vibes today, notching up a near 1% gain so far.

The DJ partly responsible for the uplifting atmosphere surrounding A2 Milk shares — and the broader ASX — is likely Federal Reserve chair Jerome Powell. Last night, Powell provided commentary on what the Fed’s next move might look like in December.

Music to the ears of United States markets, JPow dished out his expectation of a 0.5% increase for the Fed’s final performance of 2022. In response, US markets rallied given this suggested a downshift from a series of 0.75% increases.

These upbeat comments produced a sea of green across the S&P500 overnight.

As the saying goes, “A rising tide lifts all boats”. And the performance of the ASX today might be proof of that. Nearly all sectors of the Aussie market are firmly in the green, with the exception of the energy sector.

The A2 Milk share price is now up 21.6% in the past month. Notably, the company’s shares have outperformed the broader S&P/ASX 200 Consumer Staples Index (ASX: XSJ) by 17.4%.

The post The A2 Milk share price just hit a 52-week high. What’s going on? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These were the worst performing ASX 200 shares in November
• Want healthy dividend growth? Why I’d buy this ASX 200 blue-chip stock
• Why did the NAB share price underperform the ASX 200 in November?
• Down 10% in November, why did the Pilbara Minerals share price power down?
• These were the best performing ASX 200 shares in November

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wyOrS6W