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Australian Stocks Reach Record High on US Fed Rate Cut Hints
25 Aug
Summary
- Australian stocks hit new high following US Fed rate cut signals
- Financials and miners led the gains, while consumer staples fell
- Ansell saw an 11.8% jump after strong earnings and buyback announcement
On August 25, 2025, the Australian stock market reached a new all-time high, following signals from the US Federal Reserve about a possible interest rate cut in the near future. The S&P/ASX 200 index climbed as much as 1% to a fresh high of 9,054.50, with most sectors trading in positive territory, except for consumer staples.
The surge in Australian shares was largely driven by the financial and mining sectors. Major banks like National Australia Bank saw their stocks rise, while mining giants BHP Group, Rio Tinto, and Fortescue Metals Group all posted gains of over 2%. The gold mining sector also performed strongly, with Northern Star Resources and Evolution Mining climbing 2.7% and 1.9%, respectively.
In corporate news, oil and gas producer Santos announced a 22.3% drop in its half-yearly earnings, but its shares still managed to increase by 1%, in line with the broader energy sector. Meanwhile, safety solutions provider Ansell saw an 11.8% jump in its stock price after reporting higher annual operating earnings and declaring a $200 million share buyback program.
The positive sentiment in the Australian market was largely attributed to the US Federal Reserve's hints about a potential interest rate cut at its September meeting. Investors are currently pricing in an 84% chance of a quarter-point rate cut in September, and at least 100 basis points of easing by the middle of next year. This is seen as a positive development for the Australian economy, as the local central bank often takes cues from the Fed.
