FX.co ★ Australian Stocks Finish at Record High

On Thursday, the S&P/ASX 200 climbed by 0.9%, achieving a new closing high of 8,637. This upward movement was largely propelled by gains in major banking stocks, following subdued labor market data that heightened expectations for an interest rate cut by the Reserve Bank of Australia (RBA) in August. June saw Australia's unemployment rate increase to 4.3%, marking the highest level since late 2021, with only 2,000 jobs added, a significant shortfall from the anticipated 20,000. The weaker labor market figures have bolstered the argument for monetary policy easing, with markets now assigning a 90% likelihood of a rate cut at the RBA's August meeting. This follows the RBA's decision to hold rates steady earlier this month pending further confirmation of sustained disinflation. Additionally, the index took cues from Wall Street's positive performance after U.S. President Trump indicated no plans to remove Federal Reserve Chair Powell, alleviating concerns about the independence of the central bank. In terms of corporate performance, financial stocks saw a 1.3% increase, with the Big Four banks witnessing gains ranging from 1% to 1.6%, fueled by optimism that reduced rates would stimulate credit demand and enhance profitability. The real estate sector also saw a 1.4% rise, led by Goodman Group's 1% advance.