Australia shares on track for third-consecutive gaining day as rate cut bets rise
Australian shares were set to extend their wins into a third successive day on Thursday, buoyed by rising expectations of another rate cut in July after soft economic growth, though gains were capped by a retreat in the biggest bank.
The S&P/ASX 200 index gained 0.3% to 8,566.2 points by 0030 GMT.
It was about 48 points shy of the record high touched in February.
The benchmark closed 0.8% higher on Wednesday.
Markets ramped up bets on further monetary easing after data released on Wednesday showed the economy had a subdued start to the year, bolstering the case for the Reserve Bank of Australia (RBA) to act again.
Interest rate swaps now reflect an 82% chance of a July cut, up from 77% before the figures were released.
The RBA last trimmed rates by 25 basis points on May 20. Miners led sectoral gains as iron ore prices rebounded overnight, driven by short-covering and profit-taking.
Rio Tinto and Fortescue Metals rose 0.5% and 1.4% respectively.
Tech shares followed closely, mirroring gains on the tech-heavy Nasdaq Composite overnight. Logistics software firm WiseTech Global climbed 1.5%, while data centre operator NEXTDC advanced 2.1%.
Real estate investment trusts rallied to their highest level since late February, as the prospect of lower interest rates revived appetite for yield-sensitive property stocks.
Australia shares close higher after weak growth data bolsters rate cut hopes
Goodman Group and Dexus were up 1.2% and 0.4% respectively. Other defensive sectors, including consumer staples and healthcare, posted modest gains — in the range of 0.2% to 0.4%.
In contrast, energy stocks underperformed as oil prices slid more than 1% following an unexpected jump in US gasoline and distillate inventories. Santos declined 0.5%.
Financials traded in a narrow range, with Commonwealth Bank of Australia easing from a record high reached on Wednesday.
The rest of the 'Big Four' lenders saw mixed performance.
Across the Tasman, New Zealand's benchmark S&P/NZX 50 index edged up 0.3% to 12,533 points.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Wall Street rises on jobs data optimism; Tesla rebounds
US stocks rose on Friday after a better-than-expected jobs report calmed worries about the economy, while Tesla rebounded from a sharp plunge a day earlier and technology stocks continued to rise. Data showed nonfarm payrolls increased by 139,000 jobs last month after rising by a downwardly revised 147,000 in April. Economists polled by Reuters had forecast payrolls advancing by 130,000 jobs. The unemployment rate stood at 4.2%, in line with expectations. 'Things are slowing, but they're not collapsing and that's the good news. We're not seeing a serious degradation of the jobs market,' said Art Hogan, chief market strategist at B Riley Wealth. Following the report, traders bet that Federal Reserve policymakers have little reason to rush on rate cuts. They are seen waiting until September to cut rates, with just one more cut in view by December, based on interest rate futures. The central bank's policy meeting is due later this month. Weaker-than-expected private payrolls numbers and surveys on services sector this week had raised concerns about an economic slowdown caused by trade uncertainties. White House trade adviser Peter Navarro said the planned meeting between U.S. and Chinese official on trade is expected to take place within seven days. Wall Street gains as investors focus on trade Trump and Chinese leader Xi Jinping spoke on Thursday after weeks of brewing trade tensions and a battle over critical minerals. The leaders, however, left key issues unresolved for future talks. U.S. equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq scoring their biggest monthly percentage gains since November 2023, thanks to softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 hit its highest in over three months on Friday and remains nearly 2.2% below record highs touched in February. The Dow index also rose to a near three-month high. The economically sensitive Russell 2000 smallcap index gained 1.3%. The Cboe Volatility Index, known as Wall Street's 'fear gauge,' fell 1.19 points to 17.29, its lowest in over two months. At 10:24 a.m. ET, the Dow Jones Industrial Average rose 541.42 points, or 1.28%, to 42,861.16, the S&P 500 gained 69.27 points, or 1.16%, to 6,008.45 and the Nasdaq Composite gained 246.51 points, or 1.28%, to 19,544.96. All of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.9% rise, while technology stocks gained 1.1%. Shares of Tesla rose 3.9% after plunging about 15% on Thursday following Trump's public feud with Musk, including threats to cut off government contracts with Musk's companies. Other megacap companies including Amazon was up 1.9%, while Alphabet gained 2.8%. Broadcom shares fell 3.3% after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors. Lululemon shares lost 20.4% as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs. Shares of virtual document signing platform DocuSign fell 18.9% after first-quarter results. Advancing issues outnumbered decliners by a 2.7-to-1 ratio on the NYSE and by a 2.82-to-1 ratio on the Nasdaq. The S&P 500 posted 20 new 52-week highs and no new lows, while the Nasdaq Composite recorded 47 new highs and 24 new lows.
Business Recorder
2 hours ago
- Business Recorder
TSX set for record high after US jobs data, trade optimism
Canada's main stock index was headed for a record high on Friday, as a better-than-expected U.S. jobs report and signs of easing trade tensions between Washington and China fueled investor optimism. The Toronto Stock Exchange's S&P/TSX composite index was up 0.6% at 26,486.37 points. The index was set to eclipse Tuesday's record closing high of 26,426.64 if gains hold. U.S. nonfarm payrolls rose by 139,000 jobs last month, data released on Friday showed, while economists polled by Reuters had expected a job growth of 130,000. Meanwhile, White House trade adviser Peter Navarro said on Friday that a planned meeting between U.S. and Chinese officials on trade is expected within seven days, giving hope that the trade war between the world's two largest economies might de-escalate. Separately, China on Friday called to improve bilateral ties with Canada. Earlier this week, U.S. President Donald Trump had doubled tariffs on imports on steel and aluminum. TSX edges higher amid US-China trade talks and upcoming jobs data 'It's just a ploy to get everyone to the table and to try to make a deal,' said Michael Constantino, CEO of online investment platform Webull Canada. Canada's Industry Minister Melanie Joly said on Thursday that Prime Minister Mark Carney and Trump are in direct communication as part of Ottawa's bid to persuade Washington to lift tariffs. 'I think the prime minister of Canada and President Trump will at some point come together and do what's best for both countries,' Constantino said. Canada's unemployment rate in May jumped to its highest level in almost nine years, excluding the peak of the COVID-19 pandemic. On TSX, information and technology stocks gained 1.4% on Friday, tracking gains in tech-heavy Nasdaq index. Energy subindex gained 1.3% as oil prices rose slightly and were on track for their first weekly gain in three weeks.
Business Recorder
3 hours ago
- Business Recorder
Wheat flat-to-up 2 cents, corn down 1-3 cents, soy down 2-4 cents
CHICAGO: The following are U.S. expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Friday: Wheat - Flat to up 2 cents per bushel CBOT wheat was nearly unchanged as the market consolidated ahead of the weekend. Futures advanced this week amid escalated fighting between grain suppliers Russia and Ukraine. Rain is expected to slow hard red winter wheat harvesting in the U.S. Plains, traders said. In France, wheat crop ratings extended a decline due to dry weather. CBOT July soft red winter wheat was last 1-1/2 cents higher at $5.47 per bushel. K.C. July hard red winter wheat edged up 1/4 cent to $5.42-3/4 per bushel, and Minneapolis July spring wheat rose 1/4 cent to $6.25-1/2 per bushel. China allows imports of rapeseed meal, soybean meal from Uruguay Corn - Down 1 to 3 cents CBOT corn sagged as the recently planted U.S. crop is off to a promising start, with mostly benign weather expected for the first half of June, analysts said. The U.S. Department of Agriculture is slated to update U.S. corn and soy crop condition ratings in a weekly report on Monday. Some traders expect USDA to increase its estimate for U.S. corn exports due to strong demand in a monthly report on Thursday. As of May 29, U.S. corn exporters had sold 99% of USDA's full-year export outlook for 2024-25, which ends August 31. CBOT July corn was last down 2-1/2 cents at $4.37 per bushel. Soybeans - Down 2 to 4 cents CBOT soybeans fell overnight with soymeal, while soyoil rose. Washington's trade war with China, the world's biggest soybean importer, looms over the soybean market. A planned meeting between U.S. and Chinese officials on trade is expected within seven days, White House trade adviser Peter Navarro said on Friday, after the countries' leaders spoke by phone on Thursday. China allowed the import of soymeal from Uruguay. CBOT July soybeans were last down 3-1/4 cents at$10.48-1/2 per bushel.
