‘Notch in the column': ASX rallies to record close on rates prediction
The ASX200 index rallied 56.6 points or 0.66 per cent to 8597.7 on Wednesday, narrowly beating the previous record close of 8592.1.
The broader All Ordinaries also jumped during Wednesday afternoon's trading up 56.70 points or 0.65 per cent to 8828.70.
Australia's dollar slipped from a nine month high, down 0.06 per cent to buy 65.75 US cents.
On an overall positive day, 10 of the 11 sectors finished in the green.
The local bourse pushed higher during the afternoon's session after Australia's retail sales came in below expectations, up 0.2 per cent in May against expectations of a 0.5 per cent lift.
This led to ANZ becoming the final of the major banks to forecast the RBA would cut interest rate in July by 25 basis points after its July 8 meeting.
Oxford Economics head of economics research and global trade Harry Murphy Cruise said Tuesday's results adds to the case for a rate cut.
'Today's data is another notch in the column to cut rates when the RBA meets next week,' he said.
'Households will need more convincing to lift spending; many have banked earlier interest rate cuts, rather than spend them through the economy.'
Despite weaker than expected retail sales figures, consumer discretionary were among the major winners.
Wesfarmers shares gained 0.76 per cent to $85.36, while JB Hi Fi jumped 1.89 per cent to $112, 67 and Harvey Norman leapt 2.06 per cent to $5.38.
Elsewhere the major iron ore miners also had a strong day after China's manufacturing PMI improved in June up from 49.5 to 49.7.
BHP jumped 1.91 per cent to $37.27 while Fortescue climbed 4.10 per cent to $16.01 and Rio Tinto gained 2.24 per cent to $108.50.
It was a mixed day for the big four banks. Commonwealth gained 0.60 per cent to $183.67, while ANZ narrowly closed higher up 0.10 per cent to $29.92.
NAB shares slipped 0.93 per cent to $39.33 while Westpac is also trading in the red down 0.44 per cent to $33.72.
In company news shares in Domino Pizza Enterprise slumped 15.79 per cent to $16.96 after the company announced chief executive Mark van Dyck will leave the business after less than a year in the top job.
Later in the trading day the ASX issued a 'speeding ticket' to Domino's with the pizza maker saying it is not aware of any information that could explain why the share price had fallen by more than 25 per cent during trading.
It subsequently strengthened after 2pm.
Qantas shares also fell 2.23 per cent to $10.52, after the airline confirmed a data breach which saw 6 million Qantas customers could have been stolen in a cyberattack believed to be part of a co-ordinated attack on airlines globally.
Shares in Helia also slumped 21.35 per cent to $4.31 after the lender mortgage insurer announced ING is in the process of negotiating with an alternate provider.
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