Australian Share Market Hits Record High Amid US-China Optimism

The Australian share market surged to a new record high, buoyed by optimism surrounding US-China trade negotiations. This momentum, however, was short-lived as investors opted to lock in profits and reduce risks in anticipation of crucial US inflation data. The S&P/ASX200 closed marginally higher at 8,592.1 points, while the broader All Ordinaries index also saw a modest gain, reaching 8,819.6 points.

The market rally was fueled by a preliminary agreement to ease trade tensions between the US and China, propelling the local bourse to an intraday peak of 8,639. Despite this positive development, concerns loomed over the potential impact of tariffs on US consumer prices, prompting investors to adopt a cautious stance. Market analysts suggested that volatility could persist in the coming weeks, with profit-taking likely as the financial year-end approaches.

Various sectors exhibited mixed performances, with real estate, materials, and energy stocks leading the gains. The financial sector, however, experienced a slight retreat after reaching a record high earlier in the week. Notable movements included CBA shares hitting a fresh peak before a slight pullback, while Zip Co outperformed with a significant surge attributed to its US expansion plans.

In contrast, Qantas shares dipped following the announcement of the closure of Jetstar Asia, its Singapore-based airline. Energy stocks benefited from an improved trade outlook, driving oil prices higher and lifting companies like Woodside. Mining giants such as Fortescue and BHP also saw positive gains, although Rio Tinto lagged behind its peers.

The IT sector faced challenges, recording a decline as certain tech stocks experienced sell-offs. Nevertheless, data center companies like Megaport and Next DC provided some respite by extending gains from the previous day. Meanwhile, Prime Minister Anthony Albanese’s commitment to a housing construction plan boosted the real estate sector over a two-day period.

Amidst these market movements, the Australian dollar strengthened against the US dollar, reflecting some stability in currency markets. The ASX200 index closed marginally higher, signaling a cautious yet optimistic sentiment among investors. Looking ahead, market participants are bracing for potential volatility in the lead-up to the end of the financial year, with a hopeful outlook for a rebound in market value in the subsequent months.