What’s going on here?

Australian stocks hit new highs as banking and tech sectors propelled the S&P/ASX 200 to its fourth day of growth, despite miners and utilities lagging behind.

What does this mean?

Australia’s stock market is riding high, with the S&P/ASX 200 index climbing 0.3% as banking and tech stocks lead the way. IDP Education saw its shares jump 3.9% after Macquarie rated it ‘outperform,’ citing reduced uncertainty in student immigration policies. This bump helped the consumer discretionary sector rise by 0.7%. Meanwhile, potential inflation hikes suggest the Reserve Bank of Australia might delay cutting rates, mildly boosting banks’ performances. Three of the ‘Big Four’ banks increased, but National Australia Bank remained steady. Global tech enthusiasm bolstered tech stocks by 1.5%, with SiteMinder up 3.7%. However, declining miner and utility shares due to falling iron ore prices and rising US yields overshadowed these gains.

Why should I care?

For markets: Banking on delay.

Investors are keenly eyeing November’s inflation data, which could influence the Reserve Bank of Australia’s rate decisions. Expected inflation upticks suggest no immediate rate cuts, temporarily steadying banking stocks despite worries over narrowing margins.

Zooming out: Stocks in global sync.

Australia’s tech stocks are riding a global wave of optimism, posting notable gains. Yet, with miners facing lower iron ore demand and utilities reacting to long-term US yields, it’s clear that Australian markets are aligning with broader global economic trends. Recognizing these connections is key to predicting future developments.