The Australian sharemarket has enjoyed a boost as real estate investment trusts and energy companies propelled the market following a promising lead from Wall Street. The surge comes in the wake of speculation around potential interest rate cuts in the world’s largest economy, after a softer-than-expected US jobs report. The benchmark S&P/ASX 200 Index rose 0.6 per cent to 7671.5, with notable gains seen in the real estate sector. Interest rate sensitivity has played a pivotal role in this surge, with traders keeping a close watch on the upcoming interest rate decision from the Reserve Bank of Australia. GrainCorp slumped amidst profit downgrade, while Westpac witnessed a favorable rally.
In a separate report, the ASX 200 was up by 0.3 per cent at 7652.8, with real estate investment trusts emerging as the strongest sector, led by notable gains from firms including Goodman Group, Vicinity Centres, and Dexus. The energy sector also exhibited strength, with Viva Energy and Woodside displaying positive movements.
The market’s optimism is further underscored by the robust performance in the world’s largest economy, with Wall Street recording its best day in months. The positive lead from Wall Street has infused an optimistic sentiment in the Australian sharemarket, likely contributing to the impressive surge.
Meanwhile, as traders anticipate the Reserve Bank of Australia’s interest rate decision, the market may witness subdued trading as market participants gauge the potential impact of the decision on various sectors. Amidst the prevailing uncertainties, the upcoming RBA decision is likely to play a substantial role in shaping the market sentiment and influencing trading patterns.
The prospects for Aussie investors look promising, with real estate stocks and energy companies leading the charge. As investors eagerly wait for the Reserve Bank’s decision, the market is brimming with anticipation, underscoring the significance of the upcoming interest rate decision.
