Australia shares on three-week rally as optimism of rate cut increases
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Australian shares rose on Friday to log their third week of consecutive gains, helped by gains in banks and discretionary stocks ahead of inflation data next week that is expected to lead to lower interest rates. The S&P/ASX 200 benchmark index closed 0.4% higher at 8,408.9 points. The index has risen 1.2% this week, its best performance in a month, and has gained nearly 2% in the past three weeks. Traders are anticipating the fourth-quarter inflation print next week to solidify market expectations that the Reserve Bank of Australia will cut borrowing costs to 4.10% in its February meeting. Those odds now stand at 78%. "Estimates for inflation are now pointing in the right direction, suggesting that inflation will be closer to the target than anticipated," said Jessica Amir, market strategist at trading platform Moomoo. "This will likely put pressure on the RBA to cut interest rates." Rate-sensitive financials r...