FX.co ★ Australian Stocks Finish at New High

On Wednesday, the S&P/ASX 200 rose by 0.8%, closing at a new record high of 8,841. This follows gains recorded in the previous session, driven by heightened speculation surrounding upcoming interest rate cuts both domestically and globally. In the United States, there is a more than 90% likelihood of a Federal Reserve rate reduction in September due to escalating concerns about the economy. Similarly, Australian market indicators, such as swaps, indicate full anticipation of a 0.25% rate cut by the Reserve Bank of Australia (RBA) next week. Investors are also keenly awaiting President Trump's announcement of his nominee for the Federal Reserve board, alongside deliberations for Jerome Powell's potential successor. Gold companies experienced the largest surge, gaining 2.4% to reach a two-week peak, bolstered by robust bullion prices. Notable performers included Northern Star and Newmont, which saw increases of 5.2% and 2.3%, respectively, while West African Resources surged 5.7% to hit a two-month high. Sectors sensitive to interest rates, such as banks and real estate, also saw uplifts of 0.7% and 0.9%, respectively. The mining sector mirrored these positive results, benefiting from rising iron ore prices in response to strong Chinese demand; BHP rose by 0.8% and Rio Tinto by 0.4%.