ASX extends record streak with strongest weekly rise since May

The Australian sharemarket capped a strong week with the S&P/ASX 200 Index (ASX: XJO) surging 118.2 points, or 1.4 per cent, to close at 8757.20 on Friday. This marked its best single-day gain since April 10, and third record close of the week, bolstered by a rally in CSL Limited (ASX: CSL), and commodity optimism from BHP Group Limited (ASX: BHP). For the week, the index advanced 2.1 per cent. BHP’s share price rose 3 per cent to $40.29 following strong production figures, including record copper output and steady performance in iron ore despite earlier weather setbacks.

Healthcare leads as CSL shines and sentiment remains strong

Investor sentiment remained buoyant with all 11 sectors finishing in positive territory. Healthcare stood out, led by CSL Limited (ASX: CSL), which jumped 3.6 per cent to $257.38, and gained 7 per cent over the week after UBS Group AG (SWX: UBSG) reaffirmed its buy rating and $310 price target. Mesoblast Limited (ASX: MSB) soared 34.7 per cent following early commercial success of its Ryoncil therapy. Meanwhile, Virgin Australia Group Limited (ASX: VAH) rose 1.9 per cent after receiving a buy rating from UBS, and Atlas Arteria Group (ASX: ALX) dipped slightly following a legal setback in the United States.

Global outlook remains cautious amid ECB uncertainty

Globally, investor focus remained on central bank policy, particularly in Europe. A Bloomberg survey indicated that the European Central Bank (ECB) may delay its final interest rate cut to December, with economists split on the timing amid trade-related uncertainties. ECB officials including Christine Lagarde and Isabel Schnabel expressed cautious optimism, though inflation concerns persist. The S&P 500 Index (NYSE: SPX) slipped marginally on Friday. The modest decline came amid mixed corporate earnings and renewed trade concerns, particularly over fresh tariffs on European imports, which added to market caution. While strong results from financial firms such as Charles Schwab Corporation (NYSE: SCHW) and Regions Financial Corporation (NYSE: RF) lent some support, declines in major consumer and industrial names, including American Express Company (NYSE: AXP) and 3M Company (NYSE: MMM), pressured broader sentiment. A sell-off in Netflix Inc. (NASDAQ: NFLX) shares, which fell around 5 per cent despite beating expectations, further dampened the market. Overall, the session reflected a balancing act between positive economic indicators and corporate updates, against a backdrop of geopolitical and trade-related uncertainty.