RBA Action Spurs Australian Stocks

Australian stocks, the world’s best performers over the past 11 days, are on course for a record winning streak as investors speculate the central bank will cut interest rates again.

The S&P/ASX 200 Index rose 0.4 percent to 5,836.3 as of 10:30 a.m. in Sydney, heading for a 12th day of gains. A close at that level would mark the longest rally since the index was created in 2000, with about A$140 billion ($109 billion) added to the value of shares over the period. The Australian Stock Exchange All Ordinaries Index, a broader gauge created in 1979, is poised for the longest gaining streak since a 13-day stretch in January 1986.

The Reserve Bank of Australia joined a global wave of central-bank easing this week and interbank cash-rate futures show investors anticipate at least one more cut this year. The S&P/ASX 200 has a forecast dividend yield of 4.7 percent, the highest among the world’s 12 largest equity markets and close to double the rate on the nation’s 10-year sovereign bonds.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.