CHART: The Australian Market Has Closed At A Two-Month High

The ASX 200 has closed the week at a two-month high of 5116.8, continuing a spectacular run for the 2013-14 financial year.

The index gained 70.3 points this week, adding to total rise of 341.51 points since July 1.

That means investors think Australia’s 200 biggest companies are worth 7.15% more now than on June 30.

Via, here’s what happened:

This week, we’ve had the RBA governor Glenn Stevens signalling more rate cuts, disappointing building approvals data, and revelations that the government had spent nearly all of the $190 billion it made from the mining boom.

After much speculation and political jousting, the Labor Government downgraded its economic outlook today.

In contrast to this year’s ASX 200 performance, the government’s revised outlook for 2013-14 was particularly bleak, with real GDP growth expectations cut from 2.75% to 2.5% and unemployment forecasts up from 5.75% to 6.25%.

Now read: The Australian Government’s Downgraded Economic Forecasts Are Closer To Market Predictions

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