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Australian shares opened higher on Thursday, recovering from a significant decline seen the previous day. By 11:35 am, the S&P/ASX 200 index rose by 0.43%, reaching 7,984.80. This rebound was largely supported by strong performance in the technology and real estate sectors, with several companies in these categories posting notable gains. Despite the overall positive trend, the market was weighed down by a sharp decline in Woodside Energy shares, which fell 5.5% following a downgrade by Citi.
Market participants are closely monitoring the upcoming US jobs report, as it could have implications for the Federal Reserve's future interest rate decisions. This report is seen as a key indicator of economic conditions in the United States and may influence global financial markets. In other developments, a positive update for Optus and TPG Telecom contributed to market optimism, while Coronado Global Resources faced setbacks due to production issues. Challenger also experienced a substantial drop in its share price following the announcement that Apollo Global Management had reduced its stake in the company.
The SPI futures are indicating a 25-point rise, suggesting a continuation of the upward momentum seen in early trading.
Sector Performance
The Information Technology sector led the market, rising by 1.67%. Companies in this sector benefited from positive sentiment, driven by expectations of continued growth in digital and tech-related services. Meanwhile, the Energy sector was the worst performer, declining by 3.49%. The downturn in energy shares was partly driven by the drop in Woodside Energy's share price, which had a significant impact on the sector's overall performance.
Top and Bottom Large Caps
Among the large-cap stocks, NEXTDC (ASX) emerged as the best performer, gaining 8.03% to trade at $17.36. This was followed by REA Group (ASX) and Infratil (ASX), both of which saw gains amid positive market conditions. Conversely, Mineral Resources (ASX) was the worst-performing large-cap stock, declining by 4.56% to $32.65. It was followed by Woodside Energy Group (ASX) and GQG Partners (ASX), which also recorded losses.
Commodities and Currency Update
In commodities, gold is trading at US$2,529.40 per ounce, reflecting a stable performance in the precious metals market. Iron ore, however, is down 1.1%, trading at US$92.25 per tonne, with futures indicating a further decline of 2.2%. These movements in commodity prices are being closely watched, as they can significantly influence the profitability of mining companies and related sectors.
The Australian dollar is currently valued at 67.28 US cents, showing relative stability in the currency market. This exchange rate is likely to be impacted by both local economic data and broader global financial trends, including the upcoming US jobs report.
Overall, the Australian stock market is showing signs of recovery, although mixed performances across different sectors and individual companies indicate a cautious outlook among market participants. The focus remains on key economic indicators and developments, both domestically and internationally, that could shape the market's direction in the coming days.
