‘Bell ringing moment’: ASX soars to historic high, | Australian Markets

Australia’s sharemarket has made historical past, surpassing 9000 factors for the primary time as a sturdy reporting season, rate of interest cuts and subsided fears of world trade tensions ship the market into file territory.

During trading on Thursday, the ASX200 handed 9000 factors for the primary time in historical past.

This comes simply 13 months after passing 8000 factors back in July 2024.

IG market analyst Tony Sycamore informed NewsWire a mixture of a “solid reporting season” and RBA rate of interest cuts had offset fears of US President Donald Trump’s tariffs smashing the native market.

“It’s certainly a bellringing moment in terms of something to celebrate for the Australian stock market. It does herald another good gain and another record,” he stated.

During the run up to 9000 factors, the ASX 200 was up for seven out of the eight previous periods, which is the best run since 2007.

AMP chief economist and head of investment strategy Shane Oliver stated the ASX 200 continues to “shoot the lights out” on the back of a quantity of key financial tailwinds.

“The worst-case trade war scenarios now look less likely, global economic data remains mostly okay, profits are coming in stronger than expected globally and will likely pick up in Australia,” he stated.

Despite initial fears US President Donald Trump’s “Liberation Day” tariffs would smash world growth and markets, up to now traders have climbed the “wall of worry,” though it has not all been easy crusing.

On April 7 the native market misplaced $110bn, or 4 per cent, in a single day of trading.

But markets shortly recovered within the weeks that adopted as traders took the positives from Mr Trump going back to the negotiation desk with key trading companions on tariffs.

Dr Oliver stated regardless of traders up to now ignoring the tariff risk, there may nonetheless be some dangers to the native market.

“The near term risk of a correction remains high as valuations are stretched, shares are getting technically overbought, the tariffs could still show up in weaker economic data and higher US inflation,” he stated.

Dr Oliver stated the ASX 200 can be seemingly to gain on the back of rate of interest cuts.

“The US Fed is looking likely to start cutting in September as tariffs impact inflation but by less than feared and the US labour market cools and other central banks including the RBA are continuing to cut rates,” he wrote in his latest financial word.

Dr Oliver opined the RBA will steadily ease the money fee from 3.60 to 2.85 per cent by mid 2026, with money strapped mortgage holders getting fee cuts in November, February and May.

Mr Sycamore stated whereas native traders would rejoice passing 9000 factors, it can seemingly need to move 10,000 factors to get worldwide recognition.

“10,000 still seems a long way away.

“It is something we are probably looking at more next year after we’ve assessed the impact of these tariffs and we know more fully the extent of interest rate cuts from the central bank,” Mr Sycamore stated.

The market analyst stated when rate of interest cuts have absolutely been factored in by mid subsequent 12 months, the ASX 200 will seemingly get a increase.

“When we look at interest rate cuts, during a period of lowering inflation and growth slowing down, they’re generally supportive for markets.”