ASX 200 ends at fresh closing high amid trade optimism

By: Team Kalkine | Jun 11, 2025 | Read Time : 10 Mins

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 edged slightly higher on Wednesday, rising 4.90 points to close at a new peak of 8,592.10 points. The index hit a fresh high amid optimism surrounding US-China trade discussions and expectations of additional interest rate cuts from the Reserve Bank of Australia. Over the past five sessions, the benchmark index has advanced 0.59% and now sits just 0.54% below its 52-week high. Seven out of eleven sectors finished in positive territory, with A-REIT emerging as the top performer, rising 0.89% for the day and 2.47% over the last five trading days.

Macro Update: The S&P 500 recorded its sixth gain in seven sessions on Tuesday, buoyed by signs of progress in trade negotiations between U.S. and Chinese officials in London. The S&P 500 index reached its intraday peak after Commerce Secretary Howard Lutnick commented that the discussions were “going really, really well.” With this latest rally, the S&P 500 now sits less than 2% below its all-time high, having rebounded over 21% from the lows triggered by April’s tariff-driven market volatility.

Top Market Movers: Leading the ASX 200 gains were Zip Co Limited (ASX: ZIP), which jumped 15.45% to AUD 2.69, Fletcher Building Limited (ASX: FBU), up 10.00% to AUD 3.08, and Liontown Resources Limited (ASX: LTR), which rose 8.33% to AUD 0.715. On the downside, Lynas Rare Earths Limited (ASX: LYC) led the losses, falling 8.22% to AUD 8.60, followed by Beach Energy Limited (ASX: BPT), down 7.49% to AUD 1.235, and Clarity Pharmaceuticals Ltd (ASX: CU6), which declined 6.70% to AUD 2.23.

Commodity Update: The US dollar held steady on Wednesday as investors welcomed a potential U.S.-China trade agreement framework, raising hopes of easing trade tensions. Gold rose 0.49% to $3,359.59, silver edged up 0.23% to $36.72, and copper gained 0.05% to $9,759.65. Brent crude dipped 0.36% to $66.63 amid cautious sentiment, with traders awaiting President Trump’s review and concerns over weak Chinese demand and rising OPEC+ output.

Our Stance: The S&P/ASX 200 reached a new record high on Wednesday following an overnight positive session in the American market. Notably, the S&P 500 recorded its sixth gain in seven sessions after encouraging trade talks in London. Optimism over US-China trade talks and potential RBA rate cuts remains on investors’ radar, as they would impact stock markets globally. Seven of eleven sectors advanced, with A-REITs leading gains. Commodities posted mixed performance, with gold and copper advancing while Brent crude declined slightly.

In its latest session, the S&P/ASX 200 Index posted a modest gain of 4.90 points, closing at 8,592.10. This movement was accompanied by the formation of a small bullish candlestick. The index remains positioned above its 21-period Simple Moving Average (SMA) on the daily chart, reinforcing a short-term bullish bias. Importantly, it also trades above the 21-period SMA on the weekly timeframe, indicating a solid technical foundation that supports potential longer-term gains. A key level to monitor is the resistance at 8,620.50. A decisive breakout above this threshold could confirm a shift to stronger bullish momentum and enhance the broader market outlook. Sustained movement beyond this level may pave the way for further upside and improve investor confidence in the near term.

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