FX.co ★ Australian Shares Reach New Record Peak

The S&P/ASX 200 experienced a modest increase of 0.2% on Tuesday, reaching approximately 8,858, marking a new all-time high. This rise was driven by positive investor sentiment fueled by optimism surrounding a renewed trade truce between the US and China, as well as increased expectations of an interest rate cut by the Reserve Bank of Australia (RBA). On Monday, President Trump announced an extension of the trade truce with China by an additional 90 days. This extension averted the previous deadline, which was set to expire at 12:01 A.M. on Tuesday, thereby preventing Washington from escalating tariffs on Chinese imports beyond the current 30%, and averting potential retaliatory measures from China, which might have increased tariffs on US exports. Meanwhile, in Australia, market participants are keenly awaiting the RBA’s interest rate decision, anticipated later today. Many are predicting a 25 basis point reduction, which would lower the cash rate to 3.60%. Banking stocks were among the top performers, with ANZ Group Holdings climbing 0.9%, Commonwealth Bank of Australia rising 0.5%, National Australia Bank increasing by 0.5%, and Westpac Banking Corporation gaining 0.3%.