Australian shares hit record high on expectations of big Fed rate cut

Australian stocks hit a record high on Tuesday as expectations grew that the Federal Reserve could deliver a big rate cut this week. Australia's S&P/ASX 200 index rose 0.3% to 8,148.8, surpassing its previous high of 8,148.7 set on August 1. According to CME's FedWatch tool, 62% of market participants now expect a 50 basis point rate cut. Traders are awaiting Australia's August jobs report on Friday to see how the labor market is responding to high interest rates. The Reserve Bank of Australia has held interest rates steady at a 12-year high of 4.35% since November 2023. Interest-rate sensitive financial stocks rose 0.3%, with Commonwealth Bank of Australia up 0.4%. Gold stocks rose for a sixth straight session. Mining stocks edged up 0.1%, with industry giants BHP Group up 0.3% and Rio Tinto Group up 0.7%. Technology stocks rose as much as 1%, setting a new record high. (Jinshi)