AU Evening Wrap: Australia Shares Rise 0.8% as Real Estate and Tech Rally; BOE Gains 9.1%
Market Performance
Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.8% higher at 7637.4, bouncing amid strength in financial and real-estate stocks. The benchmark index followed a positive lead by U.S. equities at the end of last week, rallying from a Friday sell-off that had been prompted by fading hopes of central bank interest-rate cuts.
The heavyweight financial sector, which comprises about 28% of the ASX 200 by market capitalization, rose 0.6%. Banks $Westpac Banking Corp (WBC.AU)$, $ANZ Group Holdings Ltd (ANZ.AU)$, $National Australia Bank Ltd (NAB.AU)$ and $CommBank (CBA.AU)$ added between 0.3% and 0.75%, while investment managers $Perpetual Equity Investment Co Ltd (PIC.AU)$, $Magellan Financial Group Ltd (MFG.AU)$ and $Insignia Financial Ltd (IFL.AU)$ put on between 3.1% and 6.0%.
The property trusts sector rose 1.6%, having slumped 1.9% on Friday.
Top News
Albanese's Re-Election Plan Threatened by Fading RBA Cut Hopes
Prime Minister Anthony Albanese's path to re-election is facing obstacles as inflation remains high, delaying the possibility of interest rate relief. This raises concerns about the financial stress that households may experience approximately one year before the next election.
According to a Bloomberg survey, the Reserve Bank is expected to maintain its cash rate at a 12-year high of 4.35% until most of 2024, with the likelihood of monetary easing now predicted in November instead of September. At the beginning of the year, there was speculation in Canberra that the Labor government could call an early election to capitalize on the expected rate cuts in the second half of the year.
However, the prospects of an early relief from lower rates are diminishing, with at least one analyst, Capital Economics, predicting an increase at the next RBA meeting next week.
Perpetual in Exclusive Talks with KKR to Acquire Trust and Wealth Units
$Perpetual Equity Investment Co Ltd (PIC.AU)$ has confirmed that it is in exclusive discussions with buyout firm $KKR & Co (KKR.US)$ regarding the acquisition of the trust and wealth units of the Australian Securities Exchange wealth giant.
There is no certainty of reaching a binding agreement, or that any transaction would proceed. Any transaction would be subject to conditions including regulatory approvals.
Source: Dow Jones Newswires, AFR, ASX
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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