Weekly Wrap: Australian Share Market Rises 0.7% on Bullish U.S. Rate Cut Hopes

Market Overview - The Australian share market rose 0.7% to 8864.9 points, driven by bullish hopes for lower interest rates in the United States [1] - Ten out of eleven sectors ended higher, with significant gains in the property sector, banks, and major miners, while energy stocks experienced declines [1] Property Sector - The property sector increased by 1.3%, with notable performances from Goodman Group (up 2% to $34.37), Scentre (up 1.5% to $4.20), and Stockland (up 1.4% to $6.35) [2] - The banking sector also saw a rise, with Commonwealth Bank increasing by 1.3% to $169.97, contributing to a 1.2% overall sector gain [2] Banking Sector - NAB shares rose by 1.2% to $43.54, Westpac increased by 1.4% to $38.48, and ANZ was up 1.1% to $33.19 [3] - The banking sector's performance was influenced by job losses, which paradoxically led to higher share prices [2] Mining Sector - The materials sector rose by over 1%, with BHP up 1.3% to $40.81, Rio Tinto up 1.1% to $115.44, and Fortescue Metals up 0.86% to $18.80 [3] Gold Stocks - Gold stocks performed exceptionally well, with Regis Resources up 6.4% to $5.80, Bellevue Gold up 7.2% to 97¢, and Capricorn Metals up 3.8% to $12.32 [4] - The rise in gold prices, reaching as high as US$3,639 an ounce, was attributed to uncertainty surrounding US inflation [4] Energy Sector - The energy sector faced challenges due to lower crude oil prices, with Woodside Energy shares down 3.4% to $24.22 and Santos down 2.2% to $7.59 [5] - APA Group shares increased by 0.3% to $8.96 following a draft decision by the Australian Energy Regulator affecting revenue forecasts [5] Virgin Australia - Virgin Australia's shares rose by 0.3% to $3.22 despite a $50 million final payout to former CEO Jayne Hrdlicka, indicating strong market performance [6] Upcoming Central Bank Actions - The US Federal Reserve is expected to cut the Federal Funds Rate by 25 basis points to a range of 4% to 4.25%, which could significantly impact market sentiment [7][8] - The Bank of Canada is also anticipated to cut rates by 25 basis points to 2.5%, while the Bank of England and Bank of Japan are expected to maintain their current rates [9] Dividend Payments - An additional $2.4 billion in dividends will be paid out in Australia, which may put pressure on share prices as companies begin trading ex-dividend [10]