FX.co ★ Australian Shares Gain for Second Session

The S&P/ASX 200 index experienced a 0.5% increase, surpassing 8,720 on Wednesday, as it continued to gain momentum from the previous trading session. This uplift was largely driven by significant gains in gold stocks and major mining companies. Positive sentiment was fueled by developments in global trade, notably President Trump's announcement of a significant tariff agreement with Japan and the intensification of US-China trade negotiations ahead of the August 12 deadline. On the domestic front, investors assessed the Reserve Bank of Australia's cautious approach, which suggested a more measured pace for future rate cuts. Focus is now shifting to the PMI data expected later today, which will provide insights into the private-sector business conditions for July. In the corporate sector, gold stocks saw an increase of up to 2.4%, reaching nearly a three-week high, as the price of bullion climbed to a five-week peak. Northern Star Resources and Evolution Mining each saw their shares rise by over 3%. Additionally, mining stocks advanced by more than 2%, achieving nearly a nine-month high, buoyed by solid iron ore prices following Beijing's unveiling of a $170 billion stimulus package. Notably, Rio Tinto and BHP both saw share increases of over 2%. In contrast, biotech giant CSL declined by 1.1% due to profit-taking activities.