Cooler than anticipated inflation propelled the benchmark to a document excessive on Wednesday as buyers raised their bets that the Reserve Bank would reduce rates of interest this yr.
The benchmark S&P/ASX200 index reset its document intraday excessive to 7,682.3 factors, earlier than ending barely decrease at 7,680.7, up 1.1 per cent to its highest shut on document.
After rising for eight consecutive classes, the ASX200 booked its longest successful streak since August 2021.
Meanwhile, the broader All Ordinaries additionally got here inside 43.5 factors of its document, rising 1 per cent to 7,912.8
Against the dollar, the Australian greenback was sharply decrease, falling 0.6 per cent to US65.63c, as bond yields dived on heightened expectations of fee cuts.
Fresh inflation information confirmed shopper worth development eased to 4.1 per cent within the December quarter, down from 5.4 per cent within the quarter prior – and the bottom for 2 yr.
The outcome was far softer than consensus expectations for a 4.3 per cent rise, and got here in below the central financial institution’s personal forecast of 4.5 per cent.
Following the figures, cash markets ascribed a 78 per cent likelihood that the central financial institution will reduce rates of interest at its June assembly, and are absolutely priced for 2 fee cuts earlier than yr’s finish commencing in August.
Westpac chief economist Luci Ellis mentioned the Reserve Bank would preserve the money fee on maintain at its first assembly of the yr subsequent week, and it was unlikely to lift charges additional this cycle.
“Today’s CPI release seals the deal,” she mentioned.
Noting the rise in home costs and up to date uptick in productiveness, Ms Ellis mentioned a few of the dangers the RBA had recognized had “not come to pass”.
“We continue to expect the first rate cut no earlier than September.”
All 11 of trade sectors completed within the inexperienced, led by rate of interest delicate actual property and utilities shares which added 2 per cent and 1.7 per cent, respectively.
Property sector heavyweights rallied with Dexus and Lendlease rising 2.6 per cent to $7.80, and $7.41 respectively. Lifestyle Communities up 1.9 per cent to $18.03.
The utilities sector was buoyed by heavyweight Origin Energy which added 2.7 per cent to $8.52, its highest degree since November 27. On Monday, the corporate upped its stake in UK-based renewable vitality agency Octopus Energy with an funding of $354.3 million.
Elsewhere in company news, nickel miner IGO misplaced 2.2 per cent to $7.56 after it introduced it was putting its Cosmos mine on care and upkeep amid a deteriorating outlook for the commodity,
Infant milk components producer Bubs Australia vaulted 4.6 per cent to 12c as the corporate mentioned it was on monitor to attain its steerage for the 2024 monetary yr.
Weebit Nano shares plunged 9.9 per cent to $3.48. Investors had been offloading the semiconductor firm after it posted quarterly income of lower than $500,000 and introduced it anticipated no royalty funds from its shoppers this yr as they continued to ramp up manufacturing.
Shares in Sayona Mining shed 4.8 per cent to 4c. In its newest quarterly replace, the lithium miner revealed a 76 per cent decline in income quarter on quarter to $23m.
Financials additionally carried out strongly, up 1.5 per cent, as the massive 4 banks posted good points between 1.3 per cent and 1.5 per cent.
Originally revealed as Bourse surges to document excessive as inflation cools sooner than anticipated
Source: www.dailytelegraph.com.au
