AUS
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Highlights
- ASX 200 Near Record Highs: Anticipation of US interest rate cuts boosts the ASX 200 close to record levels.
- US Market Strength: Dow Jones and S&P 500 hit new highs; Russell 2000 gains for the fifth straight session.
- Local Market Developments: BHP projects record FY24 production; Zip pauses trading for a $267 million debt reduction raise.
The ASX 200 is set to open near record highs as US markets fully anticipate interest rate cuts in September, following remarks by J Powell. He indicated that recent US data has increased the Fed's confidence in making cuts, stating:
"We didn't gain any additional confidence in the first quarter, but the three readings in the second quarter, including the one from last week, do add somewhat to confidence."
US benchmarks closed higher, with the Dow Jones and S&P 500 reaching new all-time highs. Market breadth was positive, with the equal-weight S&P 500 outperforming the official index by over 100 basis points. The small-cap Russell 2000 also rallied for a fifth consecutive session, now up 11.05% since July 8th.
Gold hit a new record high amid bullish bets on Fed cuts, while safe-haven demand has surged under the 'Trump Trade,' favoring protectionist assets.
In the local market, BHP announced that its FY24 production is expected to reach several records, with all commodities meeting guidance levels. Meanwhile, buy now, pay later operator Zip has entered a trading halt, pending a $267 million raise to pay down debt.
