Don’t stop me now: Aussie market continues its run into uncharted territory
Local shares have pushed further into record territory during morning trade, with all sectors gaining ground amid a global lift in sentiment.
At noon AEST on Wednesday, the benchmark S&P/ASX200 index was up 72.8 points, or 0.91 per cent, to 8,072.1, while the broader All Ordinaries was up 73.8 points, or 0.9 per cent, to 8,317.1.
Closing above Monday’s level of 8,017.6 would be the ASX200’s eighth record high of 2024.
In the United States overnight, Federal Reserve governor Adriana Kugler expressed optimism inflation was returning to target, a precondition the Fed has set on cutting interest rates.
“We’re seeing more progress on all three categories now,” Kugler said, pointing to easing cost pressures for goods, services and now housing.
Monthly US retail sales figures were unchanged in June, a display of consumer resilience allaying fears the world’s biggest economy was heading for a hard landing.
The interest-rate-sensitive real estate sector was the biggest gainer, rising 1.8 per cent as office tower owner Dexus added 2.1 per cent and shopping centre operator Vicinity Centres climbed 3.0 per cent.
In the heavyweight mining sector, goldminers were gaining as the precious metal changed hands at a record high of $US2,482 an ounce, up from around $2,410 last week.
Capital.com analyst Kyle Rodda said the conditions for gold could not be better, with the yellow metal gaining from increased odds of aggressive US rate cuts as well as expectations that a likely Donald Trump victory would lead to a ratcheting up of both inflation and global geopolitical tensions.
Northern Star was up 4.5 per cent to a one-month high of $14.59, Newmont had risen 2.5 per cent to an all-time high of $72.04 and West Africa Resources had climbed 5.0 per cent to a two-week high of $1.57.
Stay informed, daily
Elsewhere in the sector, BHP was down 0.2 per cent to $43.01 as the Big Australian reported it had met fourth-quarter production guidance across all commodities, with unit costs within guidance range.
Fortescue was down 0.5 per cent to $22.47, Rio Tinto had added 0.7 per cent to $117.60 and lithium miner Pilbara was up 2.0 per cent to $3.06.
All of the Big Four banks were higher, with NAB up 0.9 per cent, Westpac adding 0.8 per cent and ANZ and CBA both up 0.7 per cent.
Droneshield had slid further, dropping 21.3 per cent to $1.59. Its shares are now down 8.4 per cent in July, but still up 324 per cent for the year.
The Australian dollar was buying 67.39 US cents, from 67.42 US cents at Tuesday’s ASX close.
