Australian Stocks Hit Record High on Fed Rate Cut Hopes

The Australian stock market reached a new all-time high on Tuesday, fueled by growing expectations of a significant interest rate cut from the Federal Reserve this week. The S&P/ASX 200 index climbed 0.3% to 8,148.8 points, surpassing its previous record of 8,148.7 points set on August 1st.

According to CME's FedWatch tool, 62% of market participants now anticipate a 50 basis point rate cut. Traders are awaiting Australia's August employment report on Friday for insights into how the labor market is coping with high interest rates.

The Reserve Bank of Australia (RBA) has held interest rates steady at a 12-year high of 4.35% since November 2023. Rate-sensitive financial stocks rose 0.3%, with Commonwealth Bank of Australia gaining 0.4%. Gold stocks extended their gains for a sixth consecutive trading day. Mining stocks edged up 0.1%, with industry giants BHP Billiton rising 0.3% and Rio Tinto climbing 0.7%. Tech stocks surged 1%, hitting a new all-time high. (Gold Ten)