ASX boosted by banking sector recovery

The Australian share market continued its upward momentum, setting a fresh intraday high for a fourth consecutive session, supported strongly by the banking sector. Westpac Banking Corporation (ASX: WBC) surged to its highest level in over a decade after posting a 14 per cent rise in quarterly net profit to $1.9 billion, marking its best trading session since the COVID-19 pandemic. This lifted the broader financial sector, with Australia and New Zealand Banking Group Limited (ASX: ANZ) gaining 2 per cent, National Australia Bank Limited (ASX: NAB) up 1.9 per cent, while Commonwealth Bank of Australia (ASX: CBA) continued to slide, falling 1.1 per cent amid valuation concerns. The S&P/ASX 200 Index (ASX: XJO) climbed 0.5 per cent to close at 8873.80, while the All Ordinaries Index (ASX: XAO) also rose 0.5 per cent, with eight of the 11 industry sectors finishing higher.

Corporate earnings drive gains across sectors

Strong earnings reports underpinned broader market gains, with notable performances from multiple companies. Origin Energy Limited (ASX: ORG) led the utilities sector, rallying 6.3 per cent following a 26 per cent increase in full-year core net profit. In the insurance space, Suncorp Group Limited (ASX: SUN) jumped 3.6 per cent after a 52 per cent surge in profit, bolstered by the sale of its banking division. Pro Medicus Limited (ASX: PME) climbed 6.2 per cent on the back of a 40 per cent profit increase, while Temple & Webster Group Limited (ASX: TPW) jumped 8.8 per cent after reporting a 21 per cent lift in revenue. Conversely, Telstra Group Limited (ASX: TLS) dropped 2.6 per cent despite announcing a $1 billion share buyback, and South32 Limited (ASX: S32) sank 5.2 per cent following an impairment charge and operational risks at its Mozal aluminium smelter.

Global markets react to inflation and crypto momentum

Globally, markets closed mixed as higher-than-expected US wholesale inflation data dampened hopes for an aggressive interest rate cut in September. The S&P 500 Index (NYSE: SPX) recorded a modest gain, while the Dow Jones Industrial Average (NYSE: DJI) and Nasdaq Composite Index (NASDAQ: IXIC) were relatively flat. July’s Producer Price Index rose 0.9 per cent month-on-month and 3.3 per cent year-on-year, its largest increase in three years. Despite the inflation surprise, markets still project a high likelihood of a rate cut. In the corporate space, Intel Corporation (NASDAQ: INTC) jumped 7.4 per cent amid speculation over a potential US government investment, while Cisco Systems Inc. (NASDAQ: CSCO)and Deere & Company (NYSE: DE) declined on cautious outlooks. Meanwhile, Bitcoin briefly topped $US124,000 following a landmark US policy shift that allows retirement savings to invest in digital assets, boosting its global legitimacy.