The Australian stock market has hit another all-time high, with the benchmark index surpassing 8,300 points for the first time in history, as NAB forecasts a rate cut is just months away.
The S&P/ASX200 index rose 1 per cent to 8,331 points at 1.30pm AEDT on Tuesday.
The broader All Ordinaries index earlier rose 55.4 points, or 0.65 percent, to 8,584.1.
The gains came as NAB brought forward its forecast for a Reserve Bank of Australia rate cut from May 2025 to next February, citing “the changing balance of risks on inflation”.
NAB also predicted rates will fall to 3.1 per cent in early 2026, while employment will remain strong and GDP growth will recover.
The stock market record came after a strong lead by Wall Street overnight, with the Dow Jones and S&P 500 hitting another all-time high.
“While there was no clear catalyst for last night’s rally, the fundamental narrative is the same: the US economy is on solid footing, looser monetary policy and flexible fiscal adjustments await market participants in 2024,” he said. Capital.com analyst Kyle Rodda. .
Eight of the ASX’s 11 sectors were up at midday, with energy and utilities down and consumer staples broadly flat.
The Australian share market has risen to another all-time high, surpassing 8,300 for the first time in history, as NAB forecasts a rate cut is just months away.
Eight of the ASX’s 11 sectors were up at midday, with energy and utilities down and consumer staples broadly flat.
The heavyweight financial sector gained the most, rising 1.3 per cent, while Westpac and CBA rose 1.7 per cent, NAB added 1.5 per cent and ANZ gained 0.9 per cent. .
In the heavy mining sector, BHP rose 1.1 percent, Fortescue had added 2.3 percent and Rio Tinto had advanced 1.6 percent.
The energy sector fell after Brent crude oil fell to a 12-day low of $75 a barrel following bearish economic data from China.
Woodside was down 1.6 per cent, Santos was down 1.3 per cent and Whitehaven Coal was down two per cent.
The Australian dollar was buying 67.29 US cents early Tuesday afternoon.
