Australia’s stock market opens higher with broad gains across sectors following Wall Street’s performance
by VT Markets
/
Aug 14, 2025
The Australian stock market went up on Thursday. The S&P/ASX200 index gained 55 points, or 0.6%, reaching 8,879.
Most sectors saw increases, with nine out of eleven doing well. Financial stocks led the way in bouncing back after a decline the day before, while communication services lagged behind.
Market Hits Record High
The market is strong, pushing the ASX200 to a new high of 8,879. This marks new ground, well above the old resistance level of about 7,900 from 2024. With broad support across different sectors, the overall mood seems positive for now.
The rise in financial stocks is especially significant, likely linked to interest rate expectations. The Reserve Bank of Australia has kept the cash rate steady at 4.85% for several months, backed by a recent quarterly inflation figure of 3.1%. This stability reassures traders about bank profit margins, prompting them to invest in the sector again.
Since we’re at record levels, it’s wise to consider strategies that guard against a potential downturn. Buying put options on the XJO index could be a smart way to protect against any sudden bad news. The implied volatility, measured by the A-VIX index, is low at around 11, making protective options relatively cheap compared to previous years.
Exploring Trading Strategies
Communication services are lagging, creating a chance for pairs trading. You could buy a financial sector ETF while selling a communications-focused ETF to take advantage of this performance gap. This approach can highlight specific sector trends while minimizing overall market risk.
In the coming weeks, we should watch upcoming employment and retail sales data for signs of economic weakness. Such information could quickly challenge the market’s current optimism and this new trading level. Therefore, it’s crucial to stay flexible with derivative positions.
Create your live VT Markets account and start trading now.
by VT Markets
Aug 14, 2025
Insights 
VT 
