FX.co ★ Aussie Shares Rise in Morning Trade

The S&P/ASX 200 index experienced a modest increase of 0.5%, reaching approximately 8,785 during Friday morning trading. This uptick helped recover some of the losses from the previous session, as expectations for a more accommodative domestic monetary policy bolstered equities. The decline in employment as per the weaker-than-expected August jobs report has strengthened the anticipation of a potential interest rate cut by the Reserve Bank of Australia (RBA) later in the year. While most analysts predict no changes in September, a possible rate reduction is projected for November, contingent upon the third-quarter inflation data scheduled for release in October. The RBA has emphasized its preference for evaluating quarterly data over monthly figures, deeming the latter as less reliable. Moreover, market participants are awaiting the upcoming release of PMI figures to assess the nation's economic condition. Concurrently, the U.S. Federal Reserve reduced interest rates by 25 basis points—its first reduction this year—and suggested an additional two cuts by the end of the year. In Sydney, sectors such as technology, energy, and healthcare led the gains, with notable performances by Xero (3.5%), Santos (0.8%), and Telix Pharmaceuticals (8.5%). Despite this, the ASX is poised for its third consecutive weekly decline, influenced in part by geopolitical uncertainties and global trade tensions.