It's looking like today's trading is off to a shaky start. After hitting a new record high yesterday and climbing above 8,000 points for the first time ever, the S&P/ASX 200 Index (ASX: XJO) is taking a breather today. But let's talk about four ASX 200 bank shares, including Westpac Banking Corp (ASX: WBC), that have still smashed out new multi-year highs.
At the time of writing, the ASX 200 is reversing some of yesterday's gains and is down around 0.08% to just over 8,010 points.
So what's going on with the ASX banks this Tuesday?
Well, as we just mentioned, there's been a cavalcade of new multi-year highs from no fewer than four ASX banks.
First up, let's talk about Westpac shares.
Westpac and three other ASX bank shares at new multi-year highs
At the time of writing, Westpac shares are up a far more confident 0.43% at $28.23 each. But earlier this morning, we saw those same shares rise up to $28.26 each. Not only is that a new 52-week high for Westpac, but it is also the highest that this ASX 200 bank has traded at in the post-COVID era.
To find the last time Westpac asked this kind of price, you'd have to go all the way back to October 2019.
Things are looking even brighter for another big four bank though – National Australia Bank Ltd (ASX: NAB). NAB shares are presently up a chunky 1.02% at $37.63 each. That's after this bank climbed up as high as $37.68 a share earlier in today's session.
Again, that is a new 52-week high for NAB. But it is also a multi-year high. You'd have to go all the way back to April 2015 to find the last time NAB shares were leading with those kinds of figures.
Over at ANZ Group Holdings Ltd (ASX: ANZ), things aren't quite as euphoric. But ANZ has still clocked a new high today. This bank is currently up a solid 0.42% at $29.96 a share. That's after hitting a new high of $29.98 this morning. It's also the highest level at which ANZ shares have traded since May of 2017. So another new multi-year record here.
Finally, you might assume our last bank share at a new high today would be Commonwealth Bank of Australia (ASX: CBA). CBA is no stranger to new highs lately, and it is the only big four bank we haven't mentioned yet. But CBA hasn't hit any new highs today. It is currently up a decent 0.17% at $132.92 after going as high as $133.08 this morning. But that wasn't enough to break yesterday's new record of $133.30 a share.
No, our last ASX bank share to discuss this Tuesday is Bendigo and Adelaide Bank Ltd (ASX: BEN).
Bendigo Bank is enjoying a lift similar to that of NAB right now. This bank is presently up a healthy 1.18% at $11.97 a share after rising as high as $11.98 in earlier trading. You guessed it, that's a new 52-week high for this bank stock. But it is also the highest we've seen Bendigo Bank since February 2017.
Why are these stocks at new 52-week highs today?
There are no apparent market catalysts today that could easily explain the successful performance of ASX bank shares, especially these four stocks.
Perhaps it just comes down to the expectation that interest rates are going to fall this year. Last week, we discussed the latest inflation figures out of the United States. American inflation came in much cooler than expected over the month of June, dropping to an annualised 3% – the lowest level in three years.
That bodes extremely well for US interest rates. And If US rates drop, it could mean that our own Reserve Bank of Australia (RBA) might follow suit. Of course, that's just speculation. But it could explain why investors are so in love with the ASX banks today. Let's see what the rest of the week brings.
