Australian shares hit record high on expectations of big Fed rate cut
According to the news from Mars Finance, the Australian stock market hit a new all-time high on Tuesday, as the market's expectations for a significant interest rate cut by the Federal Reserve this week have been continuously rising. The S&P/ASX 200 index in Australia rose 0.3% to 8,148.8 points, surpassing the previous record high of 8,148.7 points set on August 1. According to the CME's FedWatch tool, 62% of market participants currently expect a 50-basis-point rate cut. Traders are awaiting the release of Australia's August employment report on Friday to understand how the labor market is responding to the high interest rates. The Reserve Bank of Australia has kept the interest rate stable at 4.35%, a 12-year high, since November 2023. Financials, which are sensitive to interest rates, rose 0.3%, with the Commonwealth Bank of Australia up 0.4%. Gold stocks have risen for the sixth consecutive trading day. Mining stocks edged up 0.1%, with industry giants BHP Group and Rio Tinto rising 0.3% and 0.7%, respectively. Tech stocks surged by as much as 1%, reaching a new all-time high.
