2024 Half-Year Recap: Aussie market's Top5 Headlines

Looking back at the first half of this year, the Australian stock market performed well, with the ASX index repeatedly reaching historic highs.

Let's review the key happenings that may have played a role in shaping mooers' trades in the first half of 2024.

The ASX 200 rose up as high as 7,910.5 points in morning trading on April 2, the highest the index has ever climbed to in its long history.

The record highs have been driven by many aspects of the market, however a key driver for investors are the encouraging economic statistics coming out of both Australia and around the globe. These reports generally show inflation slowing without causing a significant uptick in unemployment.

This has in turn gotten investors excited about potential interest rate cuts. While central banks, including our own RBA, have not given any decisive signs that they will cut rates this year, there's no doubt that hopes that this will occur have helped drive global markets to the new heights.

However, more recently the ASX has sunk due an inflation spike well above analyst expectations. The annual inflation rate rose to 4% in May, which not only pushed any potential interest rate cuts into 2025, but also may have opened the door to another RBA rate hike."

RBA has kept the official cash rate on hold for the past seven months, sitting at a staggering 4.35%. Rates will still need to remain at this level for another six weeks at least, with the much anticipated next meeting for RBA Board in early August.

Additionally, in a post meeting statement the Board released that they, "will do what is necessary”to achieve a return of inflation. All of which suggests that the outcome in the near term is still skewed towards another hike, particularly if June quarter inflation is higher than anticipated.

On 14 May 2024, Australian Treasurer Jim Chalmers delivered the 2024-25 Federal Budget, describing it as a “responsible Budget that helps people under pressure today."

The main priorities of the government, as reflected in the Budget, include helping with the cost of living, building more housing, investing in a Future Made in Australia, strengthening Medicare and responsible economic management.

Additionally, the mid-year update projected a $19bn deficit for 2024-25, confirming that deficits will be larger in the next two years. This raised concerns that the government may be moving too quick onto a stimulatory budget, rather than continuing to fight inflation.

The Sydney startup's stock began trading at A$29.90 at midday local time, a 36% premium to their A$22 issue price. They closed slightly higher at A$30.

It was the biggest first-day gain by a large Australian company since 2021 and the country's third-best performing IPO in five years, according to Dealogic.

Bitcoin, the world's largest cryptocurrency by market capitalisation, has experienced a significant resurgence in 2023, with its price nearly tripling since the start of the year. However, the digital asset's value has plateaued in recent months after reaching a peak in March.

So far this year, Australia has navigated through a challenging economic landscape with high interest rates and cost of living pressures exerting a significant burden on households and the wider economy. Currently, the economy is showing signs of softness as the RBA maintains its commitment to curbing inflation and wage growth. What's next for the Australian stock market?

The first six months of 2024 are behind us. How was your trading journey with moomoo? Did you make any gains in the volatile market?