ASX 200 tops daily close record
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More news: The Australian sharemarket has closed at its highest ever valuation, buoyed by softer-than-expected inflation data and narrowing bets on rate cuts later this year. The benchmark ASX 200 rose 1.06% to close at 7,680.70, topping its previous record close of 7628.9. Stocks in utilities, real estate, energy and financials rallied, with each sector gaining 1.5%-1.9%.
The Aussie dollar lost ground against the greenback, losing about half a percentage point since this morning to trade at 65.7 US cents.
Oil prices eased after small uptick overnight, after factory activity data from China contracted for a fourth straight month, tempering demand expectations in the world's number two economy.
Australian quarterly CPI data came in at 4.1%, cooler than expected and a marked improvement from 5.4% in the year to the September quarter. Analysts are still tipping a hold at next week's Reserve Bank cash rate meeting, but traders have priced in two rate cuts later in 2024, beginning in September.
ASX hits record high amid rate cut hopes
The news: The Australian sharemarket has set new record highs after a softer-than-expected inflation report lifted hopes of interest rate cuts in 2024.
The numbers: The benchmark ASX 200 topped its intraday high of 7632.8 to trade at 7649.3 by 2pm AEDT. We won't know until 4pm AEDT whether it tops its record daily close of 7628.9. Sectors have been mixed, but utilities stocks (+2.0%), energy stocks (+1.3%), financials (+1.1%) and real estate stocks (+1.3%) have all rallied.
The context: With the Reserve Bank set to make its first cash rate decision of 2024 next Tuesday, traders have begun pricing-in up to two rate cuts over the course of the year as inflation continues to ease. A lower cost of credit is good for company growth and fuels liquidity in markets.
