ASX Achieves Record High After US Federal Reserve Rate Cut

September 20, 2024 01:20 AM AEST | By Team Kalkine Media

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ASX Achieves Record High After US Federal Reserve Rate Cut — Image source: shutterstock

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The ASX200 surged to a new record high on Thursday, propelled by the recent reduction in the US Federal Reserve's interest rate. At midday, the ASX200 stood at 8,152.5, marking an increase of 10 points, or 0.13 percent. By the close of trading, the benchmark index finished at 8,191.9, reflecting a gain of 50 points, or 0.61 percent. The All Ordinaries Index also experienced an uplift, closing at 8,417.0, up 52.5 points, or 0.63 percent.

The market's upward momentum is attributed to the Fed's decision to lower rates by 50 basis points, a move that has bolstered investor confidence. This rate cut, the first of its kind in over four years, has stimulated market enthusiasm and has contributed to the ASX's record performance.

In anticipation of upcoming financial developments, the Australian market is now closely monitoring the Reserve Bank of Australia's (RBA) upcoming interest rate decision. The RBA's decision will be scrutinized for any potential adjustments in monetary policy that could impact the domestic financial landscape.

The Australian dollar also saw gains, rising to its highest level since the end of August. It was valued at 67.99 US cents, an increase from the previous day's close of 67.66 US cents. This rise in the Australian dollar is indicative of the broader positive sentiment in the market, driven by the recent global monetary policy changes.

Overall, the ASX's record-setting performance underscores the market's responsiveness to global economic shifts and the ongoing adjustments in financial policies. The focus now shifts to the RBA's next moves and how they will influence both domestic and international market dynamics.

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