Australian shares reach another milestone on dovish Fed

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

*********** shares reach another milestone on dovish Fed

The *********** share market has pushed further into record territory after Fed chairman Jerome Powell gave his strongest indication yet that the US central bank will cut interest rates in September.

The benchmark S&P/ASX200 index had moved above 8,100 for the first time on Thursday.

At midday, it was up 33.4 points, or 0.41 per cent, to 8,125.7, while the broader All Ordinaries had gained 35.4 points, or 0.43 per cent, to 8,355.8.

Overnight the Federal Reserve kept interest rates on hold, as was widely expected, but Mr Powell told reporters the Fed’s rate-setting committee believed the economy was moving closer to a point where a rate cut was appropriate.

If inflation continues to ease, a reduction in rates “could be on the table for as soon as the next meeting in September”, he said.

Wall Street rallied in response, with the S&P500 rising 1.6 per and the Nasdaq gaining 2.6 per cent, and that enthusiasm carried over into Australia’s session.

Nine of the ASX’s 11 sector were higher at midday, with industrials down 0.3 per cent and financials down modestly.

The interest-rate-sensitive property sector was the biggest gainer, up 1.5 per cent as Goodman Group rose 2.7 per cent and Mirvac added 1.6 per cent.

Zip Co was the biggest gainer in the ASX200 at midday, rising 4.7 per cent to a 29-month high of $2.

The Big Four banks were mixed, with Westpac up 0.2 per cent, ANZ down 0.1 per cent, CBA down 0.2 per cent and NAB falling 0.9 per cent.

In the heavyweight mining sector, goldminers were faring well as the precious metal traded around $US2,450 an ounce, near its all-time high set a fortnight ago.

Newmont was up 1.9 per cent, Northern Star had gained 1.2 per cent and Evolution had advanced 1.3 per cent.

Elsewhere in the sector, BHP was 1.0 per cent higher, Fortescue had gained 0.9 per cent and Rio Tinto had advanced 1.7 per cent.

In industrials, Droneshield had tumbled 14.6 per cent to a two-month low of $1.1875 after the defence contractor completed a $120 million capital raising at a 17 per cent discount.

Droneshield shares began the year at 37c, reached a peak of $2.60 in mid-July and have tumbled sharply since then.

The *********** dollar had recovered somewhat against its faltering US counterpart, buying 65.34 US cents, from 65.02 US cents at Wednesday’s ASX close.

This is the hidden content, please

• Sign In
• or
• Sign Up

#*********** #shares #reach #milestone #dovish #Fed

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up