Australian, European stocks hit record highs as miners surge

Global equity markets rallied to fresh records on Wednesday as easing tensions over the Iran war and falling oil prices lifted investor sentiment across the Asia-Pacific and Europe. Australia's S&P/ASX 200 spiked as much as 0.7% to a new all-time high of 9,213 points, while the STOXX Europe 600 rose to an intraday record, extending gains after closing at an all-time peak of 656.86 on Tuesday.aapnews.aap+2

Miners Drive the ASX Rally

Mining stocks powered the Australian advance for a fourth consecutive session. Rio Tinto ↗ 2.53% and BHP ↗ 2.20% rose 1.9% and 2.4% respectively as copper prices strengthened, with the raw materials sector jumping 2.5%. Gold producers added 1.4% as bullion firmed, while information technology stocks gained 1.6%.miningweekly+1

Energy stocks moved in the opposite direction, tumbling 1.8% as oil prices fell for a third straight day. Woodside Energy ↘ 1.78% and Santos dropped 2.7% and 1.7% respectively after comments by Qatari and US officials raised hopes for a diplomatic resolution to the five-month-long Iran conflict and the reopening of the Strait of Hormuz.aapnews.aap+1

"The ASX reaching this new high has been helped by pretty much the whole index, with broad-based gains across the board," eToro analyst Josh Gilbert told Reuters. "That breadth shows money is moving across the market rather than one crowded trade dragging the index higher."miningweekly+1

Europe Extends Record Run

In Europe, the pan-European STOXX 600 briefly touched a fresh intraday record on Wednesday, building on Tuesday's record close of 656.86 points, according to Reuters. The index rose 0.4% in early trading as investors weighed corporate earnings against diplomatic developments in the Middle East.reuters+1

IG analyst Tony Sycamore noted that Australia's benchmark had also attracted inflows "as a lower-beta safe-haven destination to ride out the ongoing volatility in high-beta, tech-heavy markets in Asia." With Australia's bank earnings season set to begin next week when Westpac reports results, analysts expect volatility ahead.finimize+2

Consumer Resilience Offers Support

Resilient household spending data released Tuesday gave traders additional confidence that Australian consumers were "holding up better than feared, even with rates sitting at 4.35%," Gilbert said. Softer-than-expected inflation data the prior week and a measured tone from Reserve Bank of Australia governor Michele Bullock had also boosted sentiment.finimize+2

The financials sector, which had risen 1.9% on Tuesday to a near four-month high, traded flat on Wednesday as investors positioned ahead of results. Commonwealth Bank led the big four banks lower with a 2.5% dip.aapnews.aap+1