Canada cuts rates, ASX closes 0.7% higher

Australian shares surged on Thursday, following a record-breaking session on Wall Street, driven by Canada’s central bank lowering its cash rate. The anticipation of a potential rate cut by the European Central Bank also fueled investor optimism.

US shares reached new highs, with the S&P 500 climbing 1.2% and the Nasdaq jumping 2%. Commonwealth Bank hit a record high before closing higher, while the tech sector outperformed, with WiseTech advancing and Pro Medicus dropping slightly.

Magellan Financial saw a rally as funds under management increased, while bond markets reflected speculation on potential US interest rate cuts. In commodities, iron ore slipped while gold rose.

At the closing bell, the S&P/ASX 200 was 0.68% higher, reaching 7,821.80. Futures pointed to a mixed opening for US markets.

All sectors were in the black, with Information Technology leading the gains. Mercury NZ was the best-performing large cap, while SEEK was the worst-performing.

In Asian markets, Japan’s Nikkei, Hong Kong’s Hang Seng, and China’s Shanghai Composite all saw gains.

Commodities and the dollar also saw movement, with gold trading higher, iron ore lower, and the Australian dollar buying 66.54 US cents.

Overall, the market showed resilience and optimism, with investors closely watching central bank decisions and global economic indicators for further cues.