Australian shares inched up to 8,979 in early Thursday trade, extending their winning streak to a fifth consecutive session and holding near a two-month high. Market sentiment improved on the back of a rebound in U.S. stock futures following a sharp overnight sell-off on Wall Street, after the Federal Reserve, in its first meeting under new chair Kevin Warsh, kept policy unchanged but signaled the possibility of a rate hike later this year.
On the domestic front, the Reserve Bank of Australia left the cash rate steady at 4.35% earlier this week, seeking to balance weakening economic growth against stubborn inflation pressures. However, upside in the local market was restrained by mounting concerns over the potential effects of El Niño, which forecasters warn could strengthen into one of the most severe events in decades by late 2026.
Sector performance was mixed: logistics, healthcare, and consumer stocks led the gains, while softness in non-energy minerals, industrial services, and producer manufacturing limited overall advances. The four major banks climbed between 0.4% and 1.2%. Among notable movers, Pro Medicus gained 2.1%, Brambles Ltd. rose 1.7%, and QBE Insurance added 0.9%.
