All four big banks were also in the green, as CBA – the biggest company on the ASX – recorded gains of 1 per cent, while Westpac (up 0.7 per cent), ANZ (up 0.2 per cent), and NAB (up 1 per cent) also rose.
The tech sector was bolstered by gains from data centre operator NextDC (up 0.4 per cent), software company TechnologyOne (up 0.3 per cent) and embattled software company WiseTech, which rebounded from losses made in early trade, to rise 1 per cent.
The laggards
The Star Entertainment Group lost 7.7 per cent, stepping back its gains from Wednesday, when the cash-strapped casino operator announced sales of several of its Sydney assets, including its Star Sydney Event Centre, for $60 million to Foundation Theatres.
It was a mixed day for the miners – despite iron ore heavyweights BHP, Fortescue and Rio Tinto all adding 0.9 per cent, 0.3 per cent, and 0.7 per cent respectively, Lynas Rare Earths was one of the biggest losers on the ASX, losing 2.5 per cent. Mineral Resources and Pilbara Minerals slipped 0.9 per cent and 1.3 per cent, respectively.
The lowdown
Moomoo market strategist Jessica Amir said interest-rate sensitive sectors such as consumer discretionary stocks were rising on the back of an anticipated rate cut next month, which would deliver extra cash into the pockets of consumers.
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“Our market has got a green light to hit higher levels because interest rates could be cut,” she said. “People are excited about the future … anticipating higher company earnings and more money to be flushed in the Australian economy – because when rates are cut, people are out spending more.”
The Australian Bureau of Statistics on Wednesday said inflation cooled to 2.4 per cent in the year to December, boosting hopes for the Reserve Bank to deliver a rate cut at their meeting in February.
On Wall Street, the S&P 500 fell 0.5 per cent following the Fed’s widely expected decision to hold rates steady. The Dow Jones dipped 0.3 per cent, and the Nasdaq composite fell 0.5 per cent.
However, a $US328 billion ($529 billion) exchange-traded fund tracking the tech-heavy index whipsawed after the close of regular trading. Tesla rebounded after an initial slide that followed its results. Microsoft dropped as growth in its cloud-computing business slowed during the last three months of 2024.
Quote of the day
“The discretionary retail sector is Jonesing for an interest rate cut to breathe some life into moribund sales growth and shrinking margins. We have seen a string of profit downgrades from the sector that has now been under pressure for more than a year. The landscape is characterised by deep discounting, which hasn’t been enough to lure customers back to the shops.”
Read Elizabeth Knight’s comment on struggling retailers here.
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With AP
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