Australian shares hit record high on expectations of big Fed rate cut

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ODAILY
3 days ago
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Odaily Odaily News Australian stocks hit a record high on Tuesday as market expectations grew that the Federal Reserve might cut interest rates sharply this week. Australia's S&P/ASX 200 index rose 0.3% to 8,148.8 points, surpassing the all-time high of 8,148.7 points set on August 1. According to CME's FedWatch tool, 62% of market participants currently expect a 50 basis point rate cut. Traders are waiting for Australia's August employment report on Friday to see how the labor market responds to high interest rates. The Reserve Bank of Australia has kept interest rates steady at a 12-year high of 4.35% since November 2023. Interest rate-sensitive financial stocks rose 0.3%, with the Commonwealth Bank of Australia up 0.4%. Gold stocks rose for the sixth consecutive trading day. Mining stocks rose slightly by 0.1%, with industry giants BHP Group up 0.3% and Rio Tinto Group up 0.7%. Technology stocks rose as much as 1%, setting a record high. (Jinshi)

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