Breaking News: Australian Sharemarket Hits Record High After US Federal Reserve Rate Cut
The Australian sharemarket soared to a fresh record high on Thursday, driven by the US Federal Reserve’s bold rate cut move and shrugging off a surprise jump in local jobs figures. Let’s dive into the details of this exciting development in the financial world:
Market Performance
- The benchmark ASX200 surged by 0.61% to close at 8191.9 points.
- The broader All Ordinaries index also rose by 0.63% to settle at 8417 points.
- Tech stocks saw a modest increase of 0.07% to reach 3381.7 points.
- Materials sector led the gains with a strong 2.31% lift.
Key Winners
- BHP, the bourse heavyweight, surged by 2.55% after an upbeat outlook from Morgan Stanley.
- Uranium miners like Paladin Energy, Deep Yellow, and Boss Energy saw significant gains.
- Real estate stocks like Goodman Group and Scentre Group rallied strongly.
Market Analysis
- The Fed’s decision to cut its benchmark rate by 50 basis points to the 4.75-5% range reverberated across global markets.
- US markets initially jumped post the announcement but closed down for the session.
- Market analysts are optimistic about the future with a strong open expected in New York.
- The Australian economy added 47,500 jobs last month, above estimates, but mostly part-time jobs.
- Big banks like Commonwealth Bank, NAB, ANZ, and Westpac all moved higher.
Corporate Highlights
- Cochlear appointed Sarah Thom as its new CFO.
- Perth Basin gas producer Strike Energy soared after WA government permitted onshore gas projects to export 20% of new LNG supply.
- Recycling business Sims was the top gainer on the ASX200.
- ALS Limited was the largest laggard, tumbling by 8.56%.
Currency Update
- The Aussie dollar gained 0.55% to buy US68c at the closing bell.
In conclusion, the Australian sharemarket’s record high reflects investor optimism post the Fed’s rate cut decision. With various sectors showing positive momentum and key players like BHP and uranium miners driving gains, the market outlook appears bright. Additionally, corporate developments like Cochlear’s CFO appointment and Strike Energy’s impressive performance add to the market’s vibrancy.
This dynamic market environment presents opportunities for investors to capitalize on the upward trend and make informed decisions to maximize their financial growth. Stay tuned for more updates on the ever-evolving world of finance and investing.