FX.co ★ Australian Shares Rise for Third Session

The S&P/ASX 200 index advanced by 0.7% to approximately 8,600 on Wednesday, marking its third straight session of gains and reaching a one-week high. This upward movement was primarily driven by the banking and mining sectors, as investors considered an inflation report that exceeded expectations. The recent comprehensive monthly price data indicated persistent price pressures, aligning with the robust quarterly figures from last month, which prompted the Reserve Bank of Australia to hold interest rates steady and adopt a more hawkish stance. Current market predictions suggest a minimal likelihood of a rate cut before May, with only about a one-third chance anticipated. Financial stocks, sensitive to interest rate changes, rose by 0.6%, with the "Big Four" banks experiencing varied performances amid concerns of high valuations. Meanwhile, real estate stocks climbed by 0.9%, led by Goodman Group, which saw a 1.9% increase. The mining sector also grew by 0.7%, supported by major players like BHP, Rio Tinto, and Fortescue, which recorded gains between 0.7% and 1.6%. Conversely, gold stocks fell by 0.7%, affected by declining bullion prices, resulting in Newmont and Northern Star dropping by 6.1% and 4%, respectively.