Financial shares led the ASX 200 market sectors this week, with a 3.32% gain over the past five trading days.
The S&P/ASX 200 Index (ASX: XJO) also lifted this week, up 1.07% over five days to finish at 7,847 points on Friday. The benchmark hit a new all-time high of 7,853.1 points during earlier intraday trading.
Eight of the 11 market sectors finished the week in the green.
Let's recap what happened.
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Financial shares led the ASX sectors this week
The major ASX 200 bank shares had an incredible week with all of them hitting new 52-week highs today.
Westpac Banking Corp (ASX: WBC) shares rose 4.69% over the five days and finished at a new record high of $27.70 on Friday.
Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares rose 3.65% and hit a new record high of $29.90 during intraday trading today.
National Australia Bank Ltd (ASX: NAB) shares rose 2.78% over the week and hit a new high of $35.12 on Friday.
Commonwealth Bank of Australia (ASX: CBA) shares rose 3.04% and hit a new high of $121.54 today.
Macquarie Group Ltd (ASX: MQG) shares rose 2.96% this week and hit a new record intraday high of $199.31 on Friday.
Fuelling this upswing was confidence that interest rate cuts are on the way both here and in the United States.
This is based on news of weak GDP growth of just 0.2% in Australia in the December quarter and 1.5% over the year amid population growth of 2.5%.
CBA head economist Gareth Aird predicts cuts of 0.75% in 2024, commencing in September, and 0.75% in the first half of 2025.
On top of that, US Federal Reserve chair Jerome Powell said it would be "appropriate for interest rates to come down significantly over the coming years" if inflation continued to fall while the economy grew.
And in good news specifically for bank stocks, Powell also indicated that plans to make US banks hold more capital would probably be scaled back.
The two listed private health insurers also did well this week after the Federal Government approved an average industry premium increase of 3.03% — and even higher rises for them.
Medibank Private Ltd (ASX: MPL) shares rose 4.77% this week to close at $3.84 on Friday, following news that its premiums will rise by 3.3%.
NIB Holdings Limited (ASX: NHF) shares lifted 6.96% to close at $7.99 on Friday. NIB premiums will rise by 4.1%.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up this week, according to CommSec data.
Over the past five days:
| S&P/ASX 200 market sector | Change this week |
| Financials (ASX: XFJ) | 3.32% |
| A-REIT (ASX: XPJ) | 2.55% |
| Healthcare (ASX: XHJ) | 1.47% |
| Information Technology (ASX: XIJ) | 1.44% |
| Industrials (ASX: XNJ) | 1.23% |
| Utilities (ASX: XUJ) | 0.66% |
| Consumer Discretionary (ASX: XDJ) | 0.58% |
| Communication (ASX: XTJ) | 0.5% |
| Consumer Staples (ASX: XSJ) | (0.29%) |
| Materials (ASX: XMJ) | (0.65%) |
| Energy (ASX: XEJ) | (0.68%) |
