The S&P/ASX 200 rose 0.4% to around 8,620 on Wednesday, hitting a fresh record high amid optimism over US–China trade talks and hopes of further RBA rate cuts. The discussions between officials from both nations extended into a second day in London on Tuesday, resulting in a preliminary deal to implement their earlier Geneva consensus. Though details remain undisclosed, US negotiators “absolutely expect” the framework to resolve rare earth trade issues, with both sides seeking leaders’ approval before moving to implementation. Adding momentum, recent economic signals suggest the RBA is gearing up for further rate cuts, with markets now pricing in a 97% chance of a 25bps cut in July and a total reduction to around 3.1% by year-end. On the corporate front, financials led the advance, with Commonwealth Bank (0.4%) hitting a new all-time high and NAB (0.5%) a four-month high. Top performers also included mining and energy stocks such as BHP Group (2%) and Fortescue (1.8%).