The local share market has rallied yet again, needing only a modest gain to finish at an all-time high on the final trading day of 2023.
The S&P/ASX200 on Thursday finished up 53.1 points, or 0.7 per cent, to 7,614.3, leaving the benchmark index just 18.5 points away from its peak set on August 13, 2021.
The broader All Ordinaries rose 55.4 points, or 0.71 per cent, to 7,852.1.
Overnight the S&P500 made small gains, stalling just ahead of its record high set in January 2022.
"Whether this is the end of the climb or just the market setting up camp remains to be seen," wrote Capital.com analyst Kyle Rodda.
It would only take a modest push to get the index over the line, but tensions in the Middle East could boil over and upturn sentiment, Mr Rodda said.
City Index and Forex.com analyst David Scutt also voiced caution, tweeting that the Australian market had bought into the soft landing narrative more than most.
"Unless reality delivers on what are now lofty expectations for next year, the unwind of the latest rally could be savage, especially for equities," Mr Scutt wrote.
Nine of the ASX's 11 sectors finished higher on Thursday, with property flat and utilities dropping 0.6 per cent.
The mining, consumer discretionary and tech sectors were the biggest winners, all rising 1.0 per cent.
BHP, Rio Tinto and Fortescue all closed at fresh all-time highs as iron ore traded at an 18-month high of $US142.50 a tonne.
Fortescue gained 2.1 per cent to $29.14 while BHP and Rio Tinto both rose 0.9 per cent, to $50.72 and $136.29, respectively.
The surging price of Australia's biggest export will likely also mean a bigger-than-expected 2023/24 federal budget surplus, given Treasury assumed the commodity trading for $US60 in mid-2024.
Elsewhere in the sector, Core Lithium was the biggest gainer in the ASX200, clawing back a bit of its recent losses with a 6.3 per cent rise to 25.5c.
All four of the big retail banks were higher, with CBA rising 1.0 per cent to an all-time high of $112.29, NAB adding 0.7 per cent to $30.73 and Westpac and NAB both up 0.6 per cent, to $23.01 and $25.98, respectively.
Target and Bunnings owner Wesfarmers added 1.3 per cent to a nearly two year high of $57.12, while JB Hi-Fi rose 1.8 per cent to a year and a half high of $53.19
The Australian dollar was near a fresh six-month high against its US counterpart, buying 68.45 US cents, from 68.29 US cents at Wednesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday up 53.1 points, or 0.7 per cent, at 7,614.3.
* The broader All Ordinaries rose 55.4 points, or 0.71 per cent, to 7,852.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.45 US cents, from 68.29 US cents at Wednesday's ASX close
* 96.63 Japanese yen, from 97.36 Japanese yen
* 61.63 Euro cents, from 61.84 Euro cents
* 53.44 British pence, from 53.64 pence
* 107.94 NZ cents, from 107.85 NZ cents
