25.08.202501:02:31UTC+00ASX 200 Reclaims 9,000 Mark

The S&P/ASX 200 index rose by 0.8% on Monday, once again surpassing the 9,000 mark—a milestone initially reached the previous week—following Wall Street's record-high performance on Friday. This surge was propelled by optimism regarding a potential interest rate cut by the US Federal Reserve at its next policy meeting, after Chair Powell suggested such a possibility during his speech at Jackson Hole. Consequently, the markets are now estimating an 85% likelihood of a rate reduction in September. In Australia, traders are anticipating a cautious approach from the Reserve Bank of Australia (RBA) following its latest rate decision, with the potential to reinitiate easing through a more significant 50 basis points cut in November. The minutes from the RBA's most recent meeting are expected to be released on Tuesday. In the corporate sector, expectations of lower interest rates have bolstered stocks connected to copper, as reduced borrowing costs are likely to encourage investment in industries that heavily use copper. Prominent mining companies such as Rio Tinto and BHP experienced gains of 1.5% and 2.4%, respectively, while Southern Copper and Freeport-McMoRan saw increases of around 4.1% and 2.7%. Additionally, major banks continued their upward trend, reaching new record highs.