Aussie Shares Soar to Record High Amid US-Iran Peace Hopes
The Australian share market has reached a record high after briefly topping its intraday peak. The S&P/ASX200 index spiked by over 0.7% to a new high of 9,213 points, surpassing its previous record of 9,202.9 set in late February.
The index was boosted by the mining sector, which jumped 2.5%, with oil prices falling to three-week lows on hopes that the US and Iran are nearing a peace deal. However, major banks acted as a weight on the market, with financials falling 1.3% after briefly topping their own record high.
CommBank led the big four banks lower with a 2.5% dip to $176.19, following a rally of over 15% in eight weeks from June's lows. The Australian dollar has also gained, buying 70.45 US cents, up from 70.14 US cents on Tuesday.
Etoro analyst Josh Gilbert attributed the market's gains to broad-based increases across the board, while IG analyst Tony Sycamore noted that new money has been flowing into the market at the start of the new financial year and the index has become a lower-beta safe-haven destination. However, Sycamore also warned that reporting season is set to pick up speed next week, leading to potentially volatile weeks ahead.