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 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.
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 advanced as much as 1.3% with BHP Group , Rio Tinto and Fortescue gaining between 0.6% and 1.5%.
Rate-sensitive financials 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 were up as much as 0.5% despite global oil prices slipping after the Fed’s rate cut. Meanwhile, gold stocks shed as much as 0.8%.
Overnight, the US Dow Jones Industrial Average fell 103.08 points, or 0.25%, at 41,503.10 points on Wednesday.
The S&P 500 lost 16.32 points, or 0.29%, while Nasdaq lost 54.76 points, or 0.31%.
Australian shares climb to record high ahead of Fed verdict
New Zealand’s benchmark S&P/NZX 50 index 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.
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