Australia's S&P/ASX 200 index rises 1% to 8,726.80

Australia's S&P/ASX 200 index rises 1% to 8,726.80

The S&P/ASX 200 index, Australia's primary investment benchmark, rose 1% to 8,726.80 on July 2, 2025, extending its recent upward trend. The increase was driven by positive economic data from the United States and strong corporate earnings reports.

The S&P/ASX 200 index gained 0.6% on Friday, July 1, 2025, reaching a new all-time high above 8,690, according to TradingView [4]. This was supported by broad gains on Wall Street overnight, as well as upbeat corporate earnings and improved business confidence in Australia.

The index's momentum was further boosted by the release of strong annual results from BHP Group, which reported record copper and iron ore production, lifting its shares by up to 2% [4]. Peers Rio Tinto and Fortescue also advanced, rising 1% and 1.4%, respectively.

In addition, the index benefited from a 0.8% increase in iron ore prices, which was supported by unexpected cuts to key lending rates in China [5]. This move boosted the outlook for the top metals consumer, leading to gains in heavyweight mining stocks.

However, the index also faced some headwinds, with gold stocks declining on weaker bullion prices and technology stocks tracking losses among their US peers. Investors were also braced for a key US inflation reading that could affect the Federal Reserve’s rate-cutting timeline.

The S&P/ASX 200 index is on track to post its strongest weekly gain since mid-May, according to TradingView [4]. Since the beginning of 2024, the index has increased 321 points or 4.23%, according to Trading Economics [5].

References:

[1] https://www.afr.com/markets/equity-markets/asx-to-rise-s-and-p-500-poised-for-a-record-close-20250718-p5mfuz
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TE02K:0-banks-boost-australia-shares-trump-eases-fed-chair-fears/
[3] https://www.marketindex.com.au/asx200
[4] https://www.tradingview.com/news/te_news:471067:0-asx-200-rallies-to-fresh-high/
[5] https://tradingeconomics.com/australia/stock-market