The sharemarket recorded its second consecutive day of gains on Thursday, as renewed optimism sparked a rally in Australian banks and Commonwealth Bank closed at a record high.

The S&P/ASX 200 closed 1.2 per cent, or 103.8 points higher at 8520.70. The rally was broad, with 10 of the 11 sectors in the green and banks leading gains. The index closed within 12 points of its record high, 8532.30. The Australian dollar slipped 19¢ to US62.65¢.

The index tracked a positive session in Wall Street trading overnight. Investors in both the US and Australian markets were given some reprieve by a lack of new developments in US tariff negotiations on Thursday as Trump instead focused on America’s relationship with major oil exporters.

A rally in Australian banks accelerated throughout the day as traders looked to stocks less exposed to global trade tensions. US Treasury secretary Scott Bessant’s statement that the US government would focus on bringing down the yield on the US ten-year Treasury heightened expectations for lower interest rates, also boosting banks. The US ten-year Treasury yield declined 9 basis points to 4.42 per cent.

Commonwealth Bank touching a record high in the afternoon, before resetting that high and closing at $162.64. NAB rose 2.5 per cent to $40.38, ANZ 2.3 per cent to $30.95 and Westpac 1.9 per cent to $34.

JPMorgan global market strategist Kerry Craig said positive economic indicators in Australia and expectations for a strong earnings season had influenced sentiment.

“Without these tariffs hanging over us, things are moving the right direction in terms of the economy, which is supportive of earnings in Australia. And more importantly there’s the outlook for the US, which is truly positive for risk-on [sentiment],” he said.

Energy stocks tracked see-sawing oil prices. Brent crude slumped to below $US75 a barrel before paring some losses throughout the day as the White House scrambled on Wednesday to defend Trump’s proposal that the US seize control of Gaza. Oil and gas producer Woodside recovered losses early in the session, closing 0.2 per cent higher at $24.83. Santos fell 0.6 per cent to $7.04.

News Corp posted the largest gain, leaping 5.8 per cent to $58.28. The company reported higher revenues and income in the second quarter driven by record-high residential revenues from its real estate division. The Star Entertainment Group suffered the largest loss, tumbling to 11.5¢.

Stocks in focus

In corporate news, News Corp rallied 5.8 per cent to $56.28 after the media giant recorded $27 million in revenues in the last three months of 2024.

Retail giant Wesfarmers jumped 3.2 per cent to $77.06, boostin the index, after UBS upgraded the stock to neutral.

PEXA dropped 3.1 per cent to $12.45 after the property settlement exchange increased its impairment forecast to between $35 million and $40 million for the 2025 financial year. It also announced the departure of its Australia chief executive Les Vance.

Platinum Asset Management jumped 3.7 per cent after Bell Potter upgraded its recommendation to “hold”. Pressure is mounting for Platinum to deliver value to shareholders, Bell Potter said, as revenues continue to fall.

Beach Energy fell 5 per cent to $1.44 per cent after the company narrowed its guidance range for the 2025 financial year, even as profit rose 37 per cent.