CBA’s record high helps drag ASX 200 higher | Australian Markets

The Australia sharemarket closed at a three month high because of trade talks between the US and China, the Commonwealth Bank hitting a record high and the RBA minutes signalling additional fee cuts are coming.

The benchmark ASX 200 index gained 52.60 factors or 0.63 per cent during Tuesday’s trading to close at 8,466.70.

The broader All Ordinaries additionally completed closely within the inexperienced up 53.40 factors or 0.62 per cent to eight,690.90.

The Australian greenback slumped all through the trading day, down 0.67 per cent and is now shopping for 64.53 US cents.

On the strongest day of trading to this point in June, 9 of the 11 sectors completed within the inexperienced, led by the large 4 banks, client staples and telecommunication companies.

CBA shares closed up 1.26 per cent to $178.64, hitting a new record high on Tuesday.

The relaxation of the large 4 are additionally trading higher, Westpac shares rose 1.37 per cent to $32.62, NAB shares rallied 1.19 per cent to close at $38.19 and ANZ shares completed closely within the inexperienced up 1.31 per cent to $29.36.

Telecommunications companies have been additionally trading higher.

Telstra shares jumped 1.04 per cent to $4.87, whereas REA group was up 0.35 per cent to $241.13 and Car Group closed within the inexperienced up 0.37 per cent to $35.55.

It was a combined day for the foremost miners with solely Fortescue metals trading higher up 0.13 per cent to $15.02. Rio Tinto shares dropped 0.66 per cent to $110.02 and BHP lagged down 0.58 per cent to $37.56.

Part of the robust day on the ASX got here from the back of potential trade talks between the US and China, with Capital.com senior financial market analyst Kyle Rodda stated the markets have been shrugging off simmering trade tensions.

“Despite the doubling of aluminium and steel tariffs and some spicy rhetoric by the US and China about trade relations, Wall Street erased an early loss to end the session broadly higher,” he stated.

In different optimistic news for the ASX, the RBA’s minutes of financial coverage was launched, with CBA economist Belinda Allen saying it confirms the RBA is taking up a more dovish tone.

“A July rate cut is ‘live’ given the discussion in the minutes, together with market pricing and RBA economic forecasts conditioned on a terminal rate cut of 3.2 per cent,” she stated.

“We continue to expect two more rate cuts this cycle and favour an August and September cut.”

In company news, shares in IDP Education plunged after the language testing and pupil placement company’s latest announcement. It says international uncertainty has seen its language check volumes fall 18 to twenty per cent whereas pupil placement volumes have slumped 28 to 30 per cent.

Treasury Wine Estates rose 0.49 per cent to $8.14 after reducing its steerage and the loss of a key distributor within the US, for its premium wine division.

Shares in playing company PointBet entered a trading halt because it waits to announce the choice of a $353m acquisition of the business by Japanese competitor MIXI.

Pizza retailer Domino’s shares have been additionally within the pink down 2.20 per cent to $21.76 after saying management adjustments to its Japanese arm to help the “next phase of its business turnaround”.