Australian shares hit record high as Fed cuts rate; local jobs data in focus
Sept 19 (Reuters) -Australian shares inched higher to a fresh record high on Thursday with miners leading gains as investors cheered on the Federal Reserve's 50 basis-point interest rate reduction, while also monitoring the local jobs data due later in the day.
The S&P/ASX 200 index .AXJO inched higher by 0.3% to 8,168.7 points at 1236 GMT, beating its previous record high of 8,153.50 points from Wednesday.
The world's largest economy witnessed a rate cut for the first time in more than four years as the Federal Reserve cut the interest rate by 50 basis points, the high side of estimates..N
Locally, investors are on the watch for the August jobs data due at 0130 GMT, for further clues on the Reserve Bank of Australia's cash rate decision next week.
Miners .AXMM advanced as much as 1.3% with BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX gaining between 0.6% and 1.5%.
Rate-sensitive financials .AXFJ were up as much as 0.6%, rising to its record high level, with the "Big Four" banks gaining between 0.4% and 0.9%.
Energy stocks .AXEJ were up as much as 0.5% despite global oil prices slipping after the Fed's rate cut. O/R
Meanwhile, gold stocks .AXGD shed as much as 0.8%.
Overnight, the U.S. Dow Jones Industrial Average .DJI fell 103.08 points, or 0.25%, at 41,503.10 points on Wednesday. The S&P 500 .SPX lost 16.32 points, or 0.29%, while Nasdaq .IXIC lost 54.76 points, or 0.31%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 0.4% at 12,637.7 points.
The country's gross domestic product fell 0.2% in the June quarter from the prior quarter as a number of industries slowed.
"Looking ahead, these data haven't materially changed our expectations for the outlook, with growth likely to remain anaemic over the rest of 2024, before a gradual recovery through 2025," said analysts at ANZ Research in a note.
Reporting by Sherin Sunny in Bengaluru; Editing by Alan Barona
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
