Australian shares rebounded on Thursday, with the S&P/ASX 200 gaining 0.4% to reach 7749.7 points, driven by increases in sectors sensitive to interest rates such as property, banking, and technology. This rise halted a two-day decline influenced by lower commodity prices. The momentum in Australian markets mirrored Wall Street’s performance, where the S&P 500 surged 0.9% to a new high of 5421.03 points, alongside the Nasdaq reaching a record 17,610 points. The optimism stemmed from heightened expectations among traders that the US Federal Reserve could begin cutting rates as early as September, following the release of US CPI data for May indicating a cooling inflation trend.
Futures
The Dow Jones futures are pointing to a fall of 49 points.
The S&P 500 futures are pointing to a rise of 8.25 points.
The Nasdaq futures are pointing to a rise of 128.5 points.
The SPI futures are up 26 points.
Best and worst performers
The best-performing sector was Information Technology, up 2.14 per cent. The worst-performing sector was Energy, down 0.64 per cent.
The best-performing large cap was NEXTDC (ASX:NXT), closing 3.56 per cent higher at $18.34. It was followed by shares in James Hardie Industries (ASX:JHX) and REA Group (ASX:REA).
The worst-performing large cap was ASX (ASX:ASX), closing 8.01 per cent lower at $58.14. It was followed by shares in Lynas Rare Earths (ASX:LYC) and Pilbara Minerals (ASX:PLS).
Asian markets
Japan’s Nikkei has lost 0.40 per cent.
Hong Kong’s Hang Seng has gained 0.36 per cent.
China’s Shanghai Composite has gained 1.53 per cent.
Commodities and the dollar
Gold is trading at US$2,329.00 an ounce.
Iron ore is 1.3 per cent higher at US$105.15 a tonne.
Iron ore futures are pointing to a 0.3 per cent rise.
Light crude is trading $0.27 lower at US$78.23 a barrel.
One Australian dollar is buying 66.46 US cents.