NAB Bank delivers good news to millions of Aussies with a mortgage

The Australian share market has climbed to another record high, with the benchmark index soaring above 8,300 points for the first time ever, as NAB forecasts a rate cut is just months away.

The S&P/ASX200 index was up 1 per cent to 8,331 points at 1.30pm AEDT on Tuesday.

The broader All Ordinaries index was earlier up 55.4 points, or 0.65 per cent, to 8,584.1.

The gains came as NAB brought forward its forecast for a Reserve Bank of Australia rate cut, from from May 2025 to next February, citing ‘the shifting balance of risks on inflation’.

NAB also predicted rates will drop to 3.1 per cent by early 2026, with employment staying strong and GDP growth recovering.

The share market record followed a strong lead from Wall Street overnight, where the Dow Jones and S&P 500 hit another record high.

‘While a clear catalyst for last night’s rally was absent, the fundamental narrative is the same – the US economy is on solid footing, easier monetary policy and loose fiscal settings are waiting for market participants in 2024,’ Capital.com analyst Kyle Rodda said.

Eight of the ASX’s 11 sectors were higher at midday, with energy and utilities lower and consumer staples basically flat.

Eight of the ASX’s 11 sectors were higher at midday, with energy and utilities lower and consumer staples basically flat.

The heavyweight financial sector was the biggest gainer, rising 1.3 per cent as Westpac and CBA both climbed 1.7 per cent, NAB added 1.5 per cent and ANZ gained 0.9 per cent.

In the heavyweight mining sector, BHP was up 1.1 per cent, Fortescue had added 2.3 per cent and Rio Tinto had advanced 1.6 per cent.

The energy sector was lower after Brent crude slumped to a 12-day low of $US75 a barrel following bearish economic data out of China.

Woodside was 1.6 per cent lower, Santos had dropped 1.3 per cent and Whitehaven Coal had dropped two per cent.

The Australian dollar was buying US67.29c in the early afternoon on Tuesday.