Australia 200 trades higher amid global rate cut expectations

The Australia 200 trades 96 points (1.12%) higher at 8760 as of 2.00pm AEST.

Morning surge sees Australia 200 approach record highs

The Australia 200 (ASX 200) surged over 100 points in early trading today, reaching a high of 8764.2 – just 13 points shy of its mid-July record high of 8776.4. Shortly after lunch, it is holding onto most of those gains.      

Global rate cut prospects boost confidence

The rally came after the bulls regained control on Wall Street overnight. The prospect of sooner and deeper Federal Reserve (Fed) interest rate cuts offset slowdown concerns from last Friday’s weak jobs report.

The United States (US) interest rate market is now fully priced for a 25 basis point (bp) rate cut in September, with a cumulative 63 bp of rate cuts expected between now and the end of the year.

This dovish turnaround follows Thursday’s hawkish Federal Open Market Committee (FOMC) meeting, where the odds of a September rate cut fell to just 44% (11 bp).

Wall Street’s gains were led by technology stocks, which are better positioned to navigate ongoing economic and political risks. They are expected to benefit from both earlier Fed rate cuts and growth in artificial intelligence (AI) technology.

Australia 200 stocks

Banking sector

It was a good day for the big banks, which appear to have bottomed out in late July and are never too far from the action on days with significant index changes.

• ANZ added 1.3% to $30.78
• Macquarie rose 1.14% to $215.55
• National Australia Bank (NAB) lifted 1.06% to $38.59
• Commonwealth Bank of Australia (CBA) climbed 0.87% to $176.47
• Westpac edged 0.80% higher to $33.46

Consumer discretionary sector

Benefiting from the prospect of rate cuts both locally and internationally, interest-sensitive sectors, particularly consumer-facing and real estate stocks, outperformed.

• Super Retail gained 2.5% to $15.55
• Myer lifted 2.07% to $0.62
• Harvey Norman increased 1.9% to $5.91
• Baby Bunting rose 1.8% to $1.71

Energy sector

• Telix Pharmaceuticals dived 10.83% to $17.84 after warning of higher operating expenses in the first half.

Healthcare sector

• Silex Systems gained 10% to $4.80 after announcing that Global Laser Enrichment, a joint venture with Cameco, has been invited to bid for up to US$900 million in funding from the US Department of Energy’s Low-Enriched Uranium (LEU) Enrichment Acquisition Program.

Mining stocks

The big mining stocks advanced as the dust settled on the shakeout following Rio Tinto's disappointing earnings surprise last week. 

• Mineral Resources gained 6.73% to $32.82, on track for its first daily close above $32.00 since mid-February
• Rio Tinto added 1.15% to $112.65
• BHP increased 0.87% to $39.93
• Fortescue edged 0.4% higher to $18.32

Real estate

• Dexus gained 1.8% to $7.15
• Goodman increased 1.8% to $35.05
• Charter Hall lifted 1.75% to $20.37
• Centuria rose 1.5% to $1.86

Technology sector

The Australia 200 information technology (IT) sector followed suit, rising 1.8% to 3013 – just shy of last week’s record high of 3057.

• DroneShield soared 7.43% to $4.06
• Zip surged 5.16% to $3.37
• Megaport rallied 3.25% to $15.23
• Life360 climbed 2% to $39.70

Australia 200 technical analysis

After hitting a fresh record high of 8776.4 in mid-July, the Australia 200 has spent the past two weeks range trading above short-term support at approximately 8620 – 8600 and below the record high.

As long as the index remains above the 8620 – 8600 reassessment zone, there is potential for a push towards 8850. Be aware that a daily close below the support at 8620 – 8600 warns that a retest of the late June 8420 low is underway.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 5 August 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}