Significant Uplift in Australian Market
Australian Shares Surge to New Highs
Australian shares traded notably higher on Wednesday, with the S&P/ASX 200 rising above 8,800 points. The ASX 200 climbed 0.6% to 8,823.30 points intraday and closed at 8,843.7 points, marking a new record high[1][2][3][5].
The rise was primarily driven by expectations of Australian interest rate cuts, buoyant commodities prices, broad sector gains, and strong corporate earnings. The June Australian inflation numbers showed a cooling to 2.1% annualized, within the RBA's 2-3% target, prompting expectations for accelerated interest rate cuts[1].
Ten of 11 sectors advanced, led by materials and energy sectors. Gold miners surged, with Newmont (+2.3%), Northern Star (+4.9%), and West African Resources (+6.1%) experiencing significant gains[3]. Energy stocks also gained alongside Brent crude price increases; Woodside was up 1.2%, Santos rose 0.5%[3].
Other notable movers included REA Group, which jumped 6.2% after announcing a record dividend and revenue/earnings growth, and News Corp, which hit a 52-week high with a 6.4% rise following strong earnings[3].
While Wall Street saw declines, investors on the ASX focused on domestic monetary easing prospects and resilient local sectors[2][3]. The All Ordinaries Index is up 55.40 points or 0.61 percent, at 9,084.20.
In other news, shares in Infomedia soared almost 28 percent after its board agreed to an acquisition by McQueen BidCo, owned by TPG Capital. Shares in Lindian Resources are skyrocketing more than 38 percent due to a deal with Iluka for the long-term supply of rare earths concentrate[4].
In the tech space, Afterpay owner Block, Zip, Xero, and WiseTech Global are showing mixed performance, while Appen is gaining more than 2 percent. Crude oil prices fell on Tuesday, slumping $1.05 or 1.58 percent to $65.24 per barrel[6].
Among the big four banks, Commonwealth Bank is gaining more than 1 percent, Westpac is adding almost 1 percent, while ANZ Banking and National Australia bank are edging up 0.2 to 0.4 percent each[7]. The U.K.'s FTSE 100 Index crept up by 0.2 percent, and the Dow edged down 0.1 percent to 44,111.74. The Nasdaq slid 0.7 percent to 20,916.55[7].
The German DAX Index rose by 0.4 percent, and the French CAC 40 Index edged down by 0.1 percent. OPEC recently decided to boost production[8]. Among major miners, BHP Group, Mineral Resources, Fortescue, Rio Tinto, and oil stocks like Origin Energy, Beach energy, Woodside Energy, and Santos are experiencing gains[8].
[1] Australian inflation data cools to 2.1%, within RBA target - AFR [2] ASX 200 hits new record high - ABC News [3] ASX closes at record high as gold miners surge - AFR [4] Shares in Infomedia soar after board agrees to McQueen BidCo acquisition - AFR [5] ASX 200 rises above 8,800 points - AAP [6] Crude oil prices fall on Tuesday - Bloomberg [7] Australian shares higher, Dow Jones and Nasdaq lower - Reuters [8] OPEC decides to boost production - CNN Business
The surge in Australian shares, reaching new highs, was fueled by expectations of interest rate cuts, significant gains in the energy and materials sectors, and positive corporate earnings. Investors in the ASX focused on domestic monetary easing prospects and resilient local sectors, including the tech space with stocks like Afterpay owner Block, Zip, Xero, and WiseTech Global.
