SYDNEY: Australian shares rose to a record high yesterday, driven by miners and banks, while investors awaited US Federal Reserve (Fed) chairman Jerome Powell’s speech at the Jackson Hole symposium later today to gauge the interest rate trajectory.
The S&P/ASX 200 index was up 0.6% at 8,966.80, as of 0043 GMT, after touching a fresh high of 8,973.70 earlier in the session.
The benchmark has gained 2.6% so far this month, hitting multiple record highs as risk sentiment improved due to a slew of factors including an interest rate cut and positive corporate earnings.
Investors around the globe are focussed on whether Powell will push back against market expectations for a rate cut next month when he speaks at the Fed’s Jackson Hole symposium today, following a weak jobs report for July.
Traders are currently pricing in around an 82% chance of a 25-basis-point rate cut in September, according to the CME Fedwatch tool.
Back in Australia, investors focussed on corporate earnings.
Australia-listed shares of James Hardie deepened their rout from Wednesday, falling as much as 9.6% to A$28.92, their lowest level since January 20, 2023.
The fibre cement maker on Wednesday flagged a bleak outlook for fiscal 2026 and forecast earnings below street view.
Whitehaven Coal fell as much as 4.2% to a one-month low of A$6.160, as the coal miner’s annual profit declined by more than half.
Miners rose 1%, with BHP and Rio Tinto up 0.1% and 0.9%, respectively.
Financials climbed 0.3%, with the “big four” banks rising between 0.1% and 0.7%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to 13,126.80.
The Reserve Bank of New Zealand said the effect of interest rate cuts on the local economy had been slower than expected, with tariff threats impacting business and consumer confidence. — Reuters
