Australian shares rose on Wednesday, with financials, gold, energy, and mining stocks driving the market higher after the Reserve Bank of Australia (RBA) cut interest rates, citing slowing inflation and global trade tensions.
Market Snapshot
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S&P/ASX 200 Index climbed 0.6% to 8,393.1 points.
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The benchmark also gained 0.6% in the previous session, extending its upward momentum.
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New Zealand’s S&P/NZX 50 Index rose 0.5% to 12,712.96.
RBA Rate Cut Sparks Optimism
On Tuesday, the RBA slashed its cash rate by 25 basis points, responding to:
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Cooling domestic inflation
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A bleak outlook for global trade, worsened by recent US tariffs
Markets had fully priced in the move since April, and two more rate cuts are anticipated this year, potentially bringing the cash rate to the 3.10%–3.35% range.
Sector Highlights
📈 Financials Rise on Rate Cut Tailwinds
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Financial stocks advanced 0.8%.
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National Australia Bank: +0.5%
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Commonwealth Bank of Australia: +0.6%
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ANZ: +0.8%
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🟡 Gold Stocks Shine on Safe-Haven Demand
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Gold miners gained nearly 4%, tracking global bullion prices higher.
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Evolution Mining: +5.3%
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St Barbara: +3.4%
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Northern Star Resources: +3.9%
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Investors are seeking refuge in gold amid US fiscal uncertainty.
🛢️ Energy Stocks Surge on Middle East Tensions
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Energy sector rose 1.6% as oil prices climbed on reports that Israel may target Iranian nuclear facilities.
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Woodside Energy: +1.5%
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Santos: +0.9%
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⛏️ Miners Support Rally
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Mining stocks advanced nearly 1% on firmer iron ore prices.
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Demand remains resilient in the near term, supporting materials.
Company Spotlight
🔻 James Hardie Industries shares dropped 4.6%, making it one of the top laggards on the ASX 200.
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The building materials giant reported a 9% decline in full-year profit, weighing on sentiment despite broader market gains.
Conclusion
The RBA’s expected interest rate cut has sparked a positive reaction across Australian markets. Banking, gold, energy, and mining sectors are all benefiting from a mix of domestic monetary easing and global macro catalysts. As expectations grow for further rate reductions, investors may see continued upside in key ASX sectors throughout 2025.
