ASX nears record close

By Peter Milios | More Articles by Peter Milios

Australian shares are inching closer to a record close, with the ASX moving within 35 points of its all-time high. The rally is being driven by strong performances in the mining and energy sectors, buoyed by record-high prices for commodities such as copper and gold. Meanwhile, in international markets, China has opted to keep its rates unchanged, adding to the overall positive sentiment. Stay tuned for further updates on this developing story.

One standout performer driving market excitement was the surge in Star Entertainment Group shares, following the disclosure of buyout interest from a consortium of investors, including the local division of the US-based parent company of Hard Rock Hotels and Casinos. This development, amidst previous share price declines, ignited speculation about the company's future and its potential strategic alliances.

Furthermore, the surge in gold prices to nearly record highs, reaching $US2441 an ounce, injected further positivity into the market, particularly benefiting gold companies like Bellevue Gold and New Hope Corp. However, amid these gains, some companies experienced declines, exemplified by Audinate Group, A2 Milk, and CAR Group.

Meanwhile, across the Pacific, Wall Street exhibited resilience and upward momentum, with the Dow Jones Industrial Average climbing by 0.3% to surpass the 40,000-point mark, and the S&P 500 inching closer to its record high, ending just 0.1% shy. Behind these seemingly stable market movements, significant underlying activity unfolded, with Reddit shares surging by 10% following an announcement of a partnership with OpenAI, despite lingering concerns about an AI-driven market bubble. Notably, meme stocks GameStop and AMC Entertainment experienced retractions after initial gains earlier in the week, reflective of the market's ongoing volatility and speculative tendencies.

Amidst these market gyrations, optimism regarding inflation control and potential Federal Reserve rate cuts persisted, although economists cautioned that better-than-expected data does not necessarily indicate a fundamentally robust economic outlook. Thus, while market participants remained cautiously optimistic about the future trajectory of the economy and monetary policy, the landscape remained nuanced and subject to ongoing developments both domestically and internationally.

About Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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