The Australian stock market has kicked off the traditional Santa Claus rally, with the ASX 200 index closing at its highest level in over a month. The index rose 0.9% to 8,699.9 points, its strongest finish since November 13.
Miners Lead the Charge
Miners were the main drivers of the rally, with iron ore and copper prices surging to record highs. Rio Tinto, BHP, and Fortescue all saw gains of between 1% and 1.7%.
Gold Miners Shine
Gold stocks also rose, with a 4.1% gain tracking the fresh peak in bullion prices. This was driven by rising US rate-cut bets and a weaker dollar.
Banks Rebound
Financials gained 0.3%, with Commonwealth Bank of Australia and ANZ adding 0.3% and 0.7% respectively. The sector has seen a nearly 3% rise in December, following a 7.4% drop in November.
Market Outlook
Investors have increased bets on further Reserve Bank of Australia tightening after hawkish signals and resilient economic data. Markets now fully price a quarter-point rate hike by June and give roughly a 25% chance of a move by February.
- The ASX 200 is expected to remain subdued into year-end, with few catalysts beyond Tuesday's release of minutes from the central bank's final policy meeting of the year.
- New Zealand's benchmark S&P/NZX 50 closed 1.3% higher at 13,508.30 points.
Remember, this is perspective, not prediction. Do your own research and stay informed about market developments.