ASX soars on Tuesday after RBA cuts cash rate to 3.6 per cent
Australia's sharemarket soared to a fresh record high on Tuesday, after a unanimous decision from the Reserve Bank of Australia to slash the cash rate.
The benchmark ASX 200 gained 36 points, or 0.41 per cent, to finish the day's trading at 8,880.80.
The broader All Ordinaries also finished the day in the green, up 32.70 points or 0.36 per cent to 9,150.30.
The Aussie dollar slipped 0.18 per cent to 65.02 US cents.
On an overall positive day eight of the 11 sectors finished higher, led by utilities, consumer discretionary, financials and telecommunications.
Eight of the 11 sectors finished higher. Picture NewsWire/ Gaye Gerard.
JB Hi-Fi was among the major winners up 6 per cent to $113.85, Aristocrat Leisure was up 1.2 per cent to $70.17 and Breville Group gained 1.32 per cent to $35.24.
The big four banks also finished in the green.
CBA gained 0.11 per cent to $178.80, NAB jumped 0.95 per cent to $39.19, Westpac gained 0.93 per cent to $34.63 and ANZ outperformed the rest up 2.2 per cent to $31.93.
Telstra group closed flat at $4.98, while Car Group soared 5.03 per cent to $39.07 and EVT Limited gained 0.47 per cent to $17.02.
Shares jumped during the afternoon's trading following the announcement from the Reserve Bank of Australia cut interest rates from 3.85 to 3.6 per cent.
While the move was widely anticipated, financial markets are now pricing at least one more interest rate cut in 2025.
IG market analyst Tony Sycamore said share and money markets moved on the assumption of multiple rate cuts.
'Following the RBA decision, the Australian interest rate market is almost fully priced for additional 25 basis point rate cuts in November and March 2026, which would bring the cash rate back to around 3.1 per cent, considered near 'neutral', where rates are neither restrictive nor contractionary.'
ASX gains on the back of the RBA rate cut. Picture: NewsWire / Jeremy Piper
AMP chief economist Shane Oliver agreed, saying 'expect further gradual easing to 2.85 per cent'.
'The RBA now sees growth recovering more slowly,' he said.
'But with growth forecast to run below potential – judged to be around 2 per cent per annum – until mid next year the risk is that this results in a rising trend in the unemployment rate in the near term, rather than a flat trend as the RBA is forecasting.'
In company news, Star Entertainment shares soared 23.60 to $0.11 after announcing it will offload its Brisbane Queen's Wharf precinct for $53m.
While Star won't get a large cash injection, the deal eases the burden on the business which would have to cough up its share of the $1.4bn debt tied to the precinct.
Shares in Life360 also soared 7.8 per cent to $40.77 after reporting second quarter revenue jumped 36 per cent to $115.4m.
Seven West Media shares slumped 6.67 per cent to $0.14 after profits slumped 63 per cent to $16.6m for the 2025 financial year.
SkyCity Entertainment closed 0.6 per cent higher to $0.90 after telling the market its Adelaide casino has been found suitable to retain its licence.
Originally published as 'Gradual easing': RBA rate call helped lift ASX to record high
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