Australian Sharemarket Gains Driven by Banking and Mining Sectors Amid Easing Inflation
The S&P/ASX 200 index rises as inflation numbers decline, leading to positive market sentiment.
The Australian sharemarket continued to rise on March 26, 2025, buoyed by inflation figures that were lower than expected.
At midday AEDT, the S&P/ASX 200 index increased by 70.2 points, or 0.9 percent, reaching 8012.70. Gains in the financial and materials sectors were central to this upward movement, reflecting optimistic investor sentiment following the Albanese government’s budget announcement the previous night, which appeared unlikely to alter the Reserve Bank of Australia's (RBA) trajectory regarding interest rates.
Recent data from the Australian Bureau of Statistics revealed a decrease in the monthly inflation rate to 2.4 percent for the year ending February, down from 2.5 percent in January, defying economic forecasts that anticipated stabilization at the previous level.
Additionally, underlying inflation slipped to 2.7 percent, confirming easing price pressures.
The performance of the big four banks was positive, with ANZ seeing a rebound of 2.1 percent, while the Commonwealth Bank, the largest stock on the ASX, increased by 0.9 percent.
Westpac gained 0.7 percent, and NAB rose by 0.6 percent.
Meanwhile, mining stocks showed strength, with Rio Tinto up by 2.2 percent, and both BHP and Fortescue rising by 2 percent.
In contrast, Paladin Energy experienced a significant decline of 6.6 percent after it retracted its production guidance for the financial year 2025 due to temporary production halts at one of its mines in Namibia, caused by heavy rainfall.
Overnight, Wall Street showed modest gains following mixed trading sessions.
The S&P 500 increased by 0.2 percent after a notable surge of 1.8 percent on the previous day.
The Dow Jones added just 4 points, while the Nasdaq composite rose by 0.5 percent.
US stocks have notably rebounded from previous losses, down approximately 6 percent from their all-time highs earlier in 2025.
Despite this rebound, analysts have cautioned against potential market volatility ahead of a looming April 2 deadline, termed 'Liberation Day' by President Trump, when new tariffs on trading partners are set to commence.
Strategic assessments suggest that while recent tariff discussions could be less damaging than feared, the uncertainty surrounding them has negatively impacted consumer confidence, with a notable decline observed in the Conference Board's consumer confidence measure, which fell more than anticipated.
This decline is characterized by a significant decrease in positive expectations regarding the economy's short-term outlook, now at its lowest level in 12 years.
In corporate news, Trump Media & Technology Group surged by 8.9 percent after announcing an agreement with Crypto.com to offer new investment funds focused on American-made products.
Tesla's stock rose by 3.4 percent, despite its sales in Europe plummeting nearly 50 percent in the first two months of the year, whereas the overall market for electric vehicles expanded significantly.
As of 2025, Tesla's stock remains down by nearly 29 percent.
At midday AEDT, the S&P/ASX 200 index increased by 70.2 points, or 0.9 percent, reaching 8012.70. Gains in the financial and materials sectors were central to this upward movement, reflecting optimistic investor sentiment following the Albanese government’s budget announcement the previous night, which appeared unlikely to alter the Reserve Bank of Australia's (RBA) trajectory regarding interest rates.
Recent data from the Australian Bureau of Statistics revealed a decrease in the monthly inflation rate to 2.4 percent for the year ending February, down from 2.5 percent in January, defying economic forecasts that anticipated stabilization at the previous level.
Additionally, underlying inflation slipped to 2.7 percent, confirming easing price pressures.
The performance of the big four banks was positive, with ANZ seeing a rebound of 2.1 percent, while the Commonwealth Bank, the largest stock on the ASX, increased by 0.9 percent.
Westpac gained 0.7 percent, and NAB rose by 0.6 percent.
Meanwhile, mining stocks showed strength, with Rio Tinto up by 2.2 percent, and both BHP and Fortescue rising by 2 percent.
In contrast, Paladin Energy experienced a significant decline of 6.6 percent after it retracted its production guidance for the financial year 2025 due to temporary production halts at one of its mines in Namibia, caused by heavy rainfall.
Overnight, Wall Street showed modest gains following mixed trading sessions.
The S&P 500 increased by 0.2 percent after a notable surge of 1.8 percent on the previous day.
The Dow Jones added just 4 points, while the Nasdaq composite rose by 0.5 percent.
US stocks have notably rebounded from previous losses, down approximately 6 percent from their all-time highs earlier in 2025.
Despite this rebound, analysts have cautioned against potential market volatility ahead of a looming April 2 deadline, termed 'Liberation Day' by President Trump, when new tariffs on trading partners are set to commence.
Strategic assessments suggest that while recent tariff discussions could be less damaging than feared, the uncertainty surrounding them has negatively impacted consumer confidence, with a notable decline observed in the Conference Board's consumer confidence measure, which fell more than anticipated.
This decline is characterized by a significant decrease in positive expectations regarding the economy's short-term outlook, now at its lowest level in 12 years.
In corporate news, Trump Media & Technology Group surged by 8.9 percent after announcing an agreement with Crypto.com to offer new investment funds focused on American-made products.
Tesla's stock rose by 3.4 percent, despite its sales in Europe plummeting nearly 50 percent in the first two months of the year, whereas the overall market for electric vehicles expanded significantly.
As of 2025, Tesla's stock remains down by nearly 29 percent.
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