A sharp rally in interest rate sensitive technology and real estate stocks pushed the Australian sharemarket to reset a new intraday record near midday on Wednesday.
The benchmark S&P/ASX 200 Index rose 1 per cent to 8081 as of 12:44 pm AEST, extending gains from earlier in the session. All 11 sectors in the green.
Property stocks were among the best performing, rallying 1.3 per cent. Goodman increased 1.2 per cent, Scentre jumped 1.1 per cent and Charter Hall rose 1.2 per cent.
In New York, the Dow rose 743 points, or 1.9 per cent, to a record closing high of 40,954.48. The S&P 500 rose 0.6 per cent to 5667.20.
The Russell 2000 scored a fifth straight day of gains greater than 1 per cent, its longest winning streak since April 2000. The index gained 3.5 per cent, touching its highest level since January 2022.
Spot bullion rose as high as $US2469.66 an ounce, moving past the previous all-time peak set in May. ASX gold miners tracked the higher gold price, with West African Resources up 5 per cent and Bellevue Gold rising 3.5 per cent.
“Today, we are witnessing the broadening of the US stock market rally that many have been waiting for, and for good reason,” Mohamed El-Erian said in a post on X.
The yield on the US 10-year note slid 7 basis points to 4.16 per cent at 4.59pm. The probability of a rate cut at the Federal Reserve’s September 17-18 policy meeting reached 100 per cent, according to CME futures.
Closer to home, New Zealand’s consumer price index slowed to 0.4 per cent in the second quarter from 0.6 per cent in the previous three months. The figure was below the market consensus of 0.6 per cent.
On an annualised basis, CPI came in at 3.3 per cent year-on-year compared to the previous period’s 4 per cent. That was also weaker than the 3.5 per cent consensus.
Stocks in focus
Star Entertainment advanced 1.4 per cent. The casino operator switched on all its electronic gaming machines and tables again after shutting them due to system performance issues.
BHP edged 0.3 per cent lower after hitting its 2024 production guidance for all commodities. Metallurgical coal reaching the upper end of its revised guidance.
Online luxury retailer Cettire rallied 2.3 per cent after it confirmed gross revenue will be between $975 million and $980 million for the 12 months ending June 30.