AUS
NZ
UK
CA
USA
IND
Highlights
- The S&P/ASX 200 index trades at 8,329.3 points, with a 1% weekly gain expected—its second rise in three weeks.
- Mining stocks rise 0.9%, supported by rebounding iron ore prices and China’s stimulus measures.
- Retail sales data miss forecasts, strengthening the case for a potential rate cut by the Reserve Bank of Australia (RBA) in February.
Australian shares remained flat on Friday, as gains in heavyweight mining stocks offset marginal losses in the financial sector. Investors also digested weaker-than-expected domestic retail sales data, which has fueled speculation of a rate cut by the Reserve Bank of Australia (RBA) as early as next month.
By 2342 GMT, the S&P/ASX 200 index was trading around 8,329.3 points, putting the benchmark on track for a 1% weekly gain—the second rise in three weeks.
Retail Sales Miss Expectations
Data showed Australian retail sales in November 2024 recorded their biggest increase in 10 months, boosted by Black Friday discounting as cost-conscious shoppers flocked to deals. However, the rise fell short of forecasts, suggesting the spending boost poses no obstacle to the RBA considering a rate cut at its upcoming February meeting.
Mining Sector Outperforms
Mining stocks, which account for nearly a quarter of the resource-heavy ASX, led the day’s gains. The sector advanced 0.9%, driven by a rebound in iron ore prices following China’s latest stimulus measures, aimed at boosting demand.
Key mining players saw notable gains:
- BHP rose 1.2%
- Rio Tinto climbed 1.5%
- Fortescue added 0.2%
The mining sub-index is poised to finish a third straight week in positive territory.
Mixed Performance Across Sectors
The financial sector, which has historically benefited from higher interest rates, experienced marginal losses. Two of the "Big Four" banks ended the day in the red. However, the sub-index is still on track for a 2% weekly gain, reflecting resilience amidst a challenging environment.
Energy stocks eased slightly despite higher crude oil prices, with Woodside Energy trading flat and Santos dipping 0.1%. Despite this, the energy sub-index is set to record three consecutive weeks of gains.
Gold miners continued their strong performance, logging gains for the fourth consecutive day. The sub-index is on track for its best week since November 18, 2024, with majors Northern Star Resources and Evolution Mining both adding 1%.
New Zealand Market Snapshot
In New Zealand, the S&P/NZX 50 index edged marginally higher to 12,961.01 points. However, the benchmark is set to record a second consecutive week of losses, down 0.8% for the week.
