The Australian share market extended its record run on Tuesday after the Reserve Bank of Australia cut interest rates by 25 basis points, lowering the cash rate to 3.6%, its lowest level in more than two years.
The S&P/ASX 200 Index added 37.2 points or 0.4% to 8,882.0, with ten of 11 sectors closing in the green, with gains led by Utilities and Consumer Discretionary.
AGL Energy jumped 1.8% ahead of its earnings release scheduled for tomorrow, while Origin Energy gained 0.8.
In the consumer discretionary space, JB Hi-Fi surged 5.6%, bouncing back after a post-earnings drop of 8.4% in the prior session.
Domino’s Pizza Enterprises, Aristocrat Leisure, Wesfarmers, also advanced 0.9%, 1.2%, and 0.2%, respectively.
Financials climbed as lower rates buoyed the big four banks - Commonwealth Bank gained 0.1%, ANZ lifted 2.2%, Westpac added 0.9%, and NAB increased 1%.
Materials gained alongside a 1.1% rally in iron ore futures. BHP gained 1%, while Rio Tinto and Fortescue Metals rose 1.2% apiece.
Industrials lagged, with SGH Ltd plunging 8.5% after issuing guidance that fell short of expectations.
Among individual movers, Life360 jumped 7.8% after delivering a better-than-expected second-quarter update. The family-oriented app platform reported a 36% year-on-year increase in quarterly revenue to $115.4 million and upgraded its full-year guidance.
On the economic front, NAB’s business confidence climbed to a three-year high in July.
“Overall, the survey points to an improvement in activity through Q2 and suggests that the worries globally have not materially influenced local hiring and investment decisions,” said NAB chief economist Sally Auld.
In the bond market, yields on Australian 10-year and 2-year notes fell 0.4% and 1.6% to 4.245% and 3.335%, respectively.
