SYDNEY: The Australian sharemarket was trading substantially stronger at noon ahead of this afternoon’s Reserve Bank rates decision, with the central bank tipped to slash rates to a new record low.
At 12.05pm (AEST), the benchmark S & P/ASX200 index had added 36.5 points, or 0.63 per cent, to 5864, while the broader All Ordinaries index was up 34.5 points, or 0.59 per cent, at 5850.4.
All sectors were in positive territory at noon, apart from mining stocks, which were softer despite a 3 per cent surge in the price of iron ore overnight.
The financials reversed yesterday’s losses to be leading the market higher ahead of the RBA interest rate announcement at 2.30pm (AEST).
“The Australian share market has opened the session with a big bounce, with expectations of an interest-rate cut this afternoon,” Quay Equities head of trading Tristan K’Nell said.
