Aussie stock market indexes are set to hit a new record this week with a jump of more than 50 per cent in a month, according to data released by the Australian Securities and Investments Commission.
The benchmark S&P 500 index, which includes shares in big tech giants, is up more than 2 per cent this week, the most since March.
This is more than twice the gains of the S&s in May.
“We are seeing the return of the rally in Australia’s benchmark index, S≈P500, and it is a return to a rally that has been underway since the election,” said Paul McGlone, a strategist at the Australian Government Financial Planning Institute.
“The S&p500 has recovered a bit of its ground in recent months but the market remains far from the bottom and we are still in the early days of the return to the rally that we saw in June.”
S&omp;p 500 index: latest updateRead moreA year ago, in March, the S and P 500 hit record highs for the first time in five years, and has gained nearly 4 per cent a month since then.
The Australian Bureau of Statistics also released new figures this week that showed the nation’s gross domestic product (GDP) has grown by 0.7 per cent, which is the fastest rate of growth in the OECD.
The economy is expected to grow at an annualised rate of around 2 per-cent over the next three years.
“If you were to buy the S &p500 index this week at its current price, you would have to pay around $4,000 per year,” Mr McGlones said.
“But at the current level of the index, it would be worth more than that in an absolute sense.”
The S&ipoll is a weekly survey of the stock market by financial advisers.
The survey is conducted by the Solicitor General of Australia, which provides financial advice to members of the Australian Parliament.
The index is a proxy for the broader market.
“In the past, it has been the benchmark for many months to come, but it is the benchmark in this case,” Mr McLennan said.
The S and p500 index are the only two indexes to have outperformed the US stock market in the past five months, according a report from the US Federal Reserve Bank.
The Federal Reserve is due to release its monthly index report next week.