The Australian sharemarket closed higher on Tuesday after new records on Wall Street, with mining stocks up as gold prices soared.
The ASX 200 closed 0.6% higher at 8,808.50 with five of the market's 11 sectors increasing.
Mining stocks led the gains, with ASX 200’s materials index rising 2.1%. Iluka Resources shares were up 6.7%, while gold producers Greatland Resources and Catalyst Metals climbed 5.4% and 2.2% respectively.
This follows a surge in gold prices, which crossed the US$4,600 per ounce barrier for the first time earlier today. Spot gold has been buoyed by a new criminal probe into U.S. Federal Reserve chair Jerome Powell, on top of geopolitical tensions in both Iran and Venezuela.
Zip Co’s shares fell 7.3%, despite a spike in recent days as it weighs a listing in the U.S.
Banks and financial services companies worldwide saw shares drop after U.S. President Donald Trump called for a one-year 10% cap on credit card interest rates, including Capital One, JPMorgan Chase, Barclays, and Visa.
In the U.S., the S&P 500 and Dow Jones Industrial Average notched fresh intraday highs and record closes. The S&P closed 0.2% higher, the Dow was up 0.2%, and the Nasdaq Composite increased 0.3%.
Australian consumer confidence dropped 1.7% this month, according to today’s Westpac-Melbourne Institute Consumer Sentiment report. Consumers’ 12-month expectations for their family finances and economic conditions fell, and around 64% of respondents believe mortgage rates will rise this year.
“While confidence is still well above the extreme lows recorded during the protracted ‘cost of living’ crisis in 2022–2024, consumers are becoming more concerned about what 2026 may bring for family finances and the wider economy,” wrote Westpac’s head of Australian macro-forecasting Matthew Hassan.
“The main catalyst continues to be a sharp turn in interest rate expectations.”
Two-year and 10-year bond yields were both flat at 4.022% and 4.693% respectively.