FX.co ★ ASX 200 Advances for Second Day

The S&P/ASX 200 index advanced by 0.5%, surpassing the 8,865 mark as of Friday, continuing its upward trend from the previous session. This increase was bolstered by a rally on Wall Street the previous night. The market reacted positively to new labor data, which strengthened expectations for a potential rate cut by the Federal Reserve in September. Adding to the positive sentiment was the latest PMI data. Investors are now keenly anticipating the US jobs report later today for further insights into the likelihood of a rate cut ahead of the Federal Reserve's meeting on September 17. Despite these gains, the ASX is poised for its steepest weekly decline since late March, influenced by mixed economic indicators and diminished prospects for an immediate rate cut by the Reserve Bank of Australia. Nonetheless, the financial sector showed robust performance, with an increase of nearly 1%, as higher rates enhance net interest margins and profitability. Macquarie Group saw an increase of 1.4% following the agreement by a Fosun unit to sell a 40% stake in Portugal’s Luz Saude to an entity associated with Macquarie. Conversely, major mining companies faced declines due to weakening commodity prices, including BHP falling by 1.6%, Rio Tinto by 0.6%, and Lynas Rare Earths by 0.8%.