The S&P/ASX 200 index saw a 0.7% increase, closing at 8,598 on Wednesday following a lackluster previous session. This uptick comes amid disappointing economic figures that have bolstered speculation about an interest rate reduction by the Reserve Bank of Australia in July. Data from the Australian Bureau of Statistics revealed a modest 0.2% increase in retail sales for May, a slight improvement over April's stagnation, yet falling short of the anticipated 0.4% rise. Additionally, building permit figures were weaker than expected, heightening concerns around an economic slowdown. Financial markets now anticipate a 97% likelihood of a 25 basis points cut to 3.60% at the upcoming July 8 meeting, with the potential for rates to drop further to 2.85%, beneath most neutral projections.
In the corporate sector, mining stocks experienced a surge of over 2%, driven by robust Chinese manufacturing data that propelled copper prices to their highest level in three months. Real estate stocks also continued their upward trend, gaining 1.4% as investors expect more policy easing to reduce borrowing costs and boost property demand. Conversely, Domino’s shares tumbled nearly 16% following the announcement of CEO Mark van Dyck's departure.
