ASX 200 Blasts to New Record Highs Amid Rising Optimism for Imminent RBA Rate Cuts
The $S&P/ASX 200(.XJO.AU$ index reached a new all-time high in morning trade, hitting 7,901.2 points and surpassing the previous intraday record of 7,853.1 points set on March 8.
The $S&P 500 Index(.SPX.US$ also hit a record close, up by 0.9%, mirroring gains in Australian stocks. Confidence is growing among investors that inflation is being reined in, fueling anticipation of potential interest rate cuts. This optimistic climate is further supported by strong company earnings, the potential growth driven by AI, and the prospects of a gentle economic slowdown in both the US and Australia.
The Australian market is spurred by lower-than-expected Consumer Inflation Expectations and modest Retail Sales growth. These indicators suggest that the Reserve Bank of Australia may lean towards a more dovish stance on interest rates. Adding to the positive tone, the Australian Monthly Consumer Price Index came in below projections, further lifting the stock market.
In detail, Australia's 12-month consumer inflation outlook rose by 4.3% in March, a slight decrease from the 4.5% rise previously. Meanwhile, Retail Sales for February saw a seasonally adjusted increase of 0.3% month-over-month, which was below the anticipated 0.4% and the 1.1% increase seen in the prior month.
Analysts' Take
A rising gold price suggests the market expects further falls in inflation should support the central banks move to cut rates later this year. Safe haven demand also remains strong," ANZ told investors this morning.
The S&P 500 continues to defy all of the naysayers," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. "As we have been saying for over a year now, if the economy continues to expand and corporate profits keep growing with it, the stock market will keep moving higher, even in the absence of rate cuts."
The rally is focused on miners today, so that's an indication of a cyclical upswing and more comfort with the outlook for the global economy," chief investment officer at Australian Eagle Asset Management Sean Sequeira said.
Source: AFR, The Motley Fool, FXSTREET
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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TOLKKI : I've also become very active.
OB1KENOB : New record high. Even better, it was extremely broad-based (about 5 to 1 in terms of winners versus losers), and we closed nearly at the high of the session
Cocona33 :
