AUSTRALIAN STOCKS RALLY ON INTEREST RATE CUT: Here's what you need to know

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The Australian market surged to post-GFC highs with stocks pushed higher across the board by investors riding a cut in official interest rates.

Here’s the scoreboard:

  • S&P ASX 200: 5,707.4 +82.1 (1.46%)
  • All Ordinaries: 5,666.2 +79.7 (1.43%)
  • AUD/USD: 0.7658 -0.0145 (-1.86%)

The RBA cut interest rates to 2.25% from 2.5% on concerns about economic growth and the strength of the Australian dollar.

The market staged a rally with nine out of 10 sectors gaining ground, led by energy which closed up more than 4%.

Woodside Petroleum was up 3% to $35.69. Among the miners BHP was stronger by 3.55% to $30.65 and Fortescue 2.6% to $2.37.

The banks were all stronger, with the ANZ up 2.22% to $34.11 and the Commonwealth closing up 0.8% to $90.40.

The top stories on Tuesday:

1. The RBA has cut rates to 2.25% because it thinks the economy has weakened. This is what the RBA said. Some market economists are tipping another cut in rates in March.

2. The Australian dollar was destroyed. Companies everywhere will be wondering how low it can go.

3. Beach Energy shares went through the roof after Kerry Stokes’ Seven Group bought a strategic stake. They closed up 15.3% to $1.167.

4. BHP finally gets back above the $30 mark. The world’s biggest miner has been under pressure from steeply falling commodity prices, mainly oil and iron ore but today closed up 3.55% to $30.65.

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