FX.co ★ Australian Shares Trade Slightly Higher

The S&P/ASX 200 nudged higher to approximately 8,598 on Thursday, maintaining its proximity to record levels. This positive momentum was underpinned by a boost in market confidence following remarks from US President Donald Trump concerning the US-China trade deal. On Wednesday, President Trump expressed satisfaction with a trade agreement poised to re-establish a tentative truce in the ongoing trade conflict, just a day after negotiators from both nations agreed to a framework addressing tariff rates. In Australia, focus is now shifting to the impending release of consumer inflation expectations for June 2025, a critical indicator that could impact the Reserve Bank of Australia's monetary policy. Current market predictions indicate a 97% likelihood of a 25 basis point rate cut in July, with futures markets suggesting a total of 75 basis points of reductions, potentially lowering the cash rate to 3.1% by the end of the year. The financial sector experienced modest gains, with Commonwealth Bank of Australia rising by 0.6%, National Australia Bank increasing by 0.3%, and Westpac Banking Corporation advancing by 0.2%.