ASX breaks through 7000
AUSTRALIAN shares have smashed through the 7000 threshold, setting an all-time high soon after the start of trading yesterday as investors welcomed the signing of a long-awaited trade deal between the US and China.
The ASX200 gained about 0.5 per cent in early trade and briefly hit 7041.4, eclipsing the previous day’s record of 6996.8 points, before finishing at 7041.8. The broader All Ordinaries index also rose strongly, closing at 7153.6.
The surge has resulted in the local bourse having its best January in more than 30 years, with gains of just over 5 per cent since the start of 2020.
Australian shares took the lead from the US, where another record result on Wall Street overnight saw the Dow Jones Industrial Index surge past 29,000 points for the first time.
The rise comes after the first phase of a trade agreement between the US and China was signed overnight in the US after two years of tense negotiations.
“The US-China trade deal has potential to boost consumer and business optimism and therefore economic activity,’’ Commsec chief economist Craig James said.
“The ASX 200 breached 7000 points for the first time, in recognition of the better economic prospects. Certainly 7000 is no magic level. But it is the power of the zeros, just like we applaud a cricket player getting 100 runs in an innings, we reflect on the path of the ASX 200 to new highs.’’
All sectors gained ground. Among the ASX 200 companies achieving record highs were Wesfarmers, James Hardie, Premier Investments, Sonic Healthcare, CSL, Cochlear, Aristocrat, Magellan Financial, Breville Group, Domain and Downer.
Commsec chief economist Craig James explains the significance of the share market reaching 7000