Australian shares nudged up on the last trading day of the year, but the gains were modest.
Market snapshot
The S&P/ASX 200 index rose 0.2% to 8,740.9 points by 23:50 GMT, putting the year‑end gain at just over 7%.
Financials lead the rise
Financial stocks added 0.9% after Commonwealth Bank of Australia jumped up to 1.6% higher, reaching its highest level in nearly two months.
Miners and gold stocks pull back
Mining shares slipped 1.4%, moving away from the record high set the day before. BHP fell 0.6% and Rio Tinto stayed flat. Gold miners dropped around 4% as gold prices retreated from their recent peak, with Evolution Mining down 4.8% and Northern Star Resources down 3.6%.
Interest‑rate backdrop
Investors are watching the U.S. Federal Reserve’s December meeting minutes for clues on next year’s policy. In Australia, the Reserve Bank kept rates steady in December and signaled that any further move could be a hike.
What this means for you
- Financial stocks may keep offering modest upside, especially big banks.
- Mining and gold exposure could face short‑term pressure as commodity prices ease.
- Keep an eye on global rate‑cut expectations, which can sway both the Australian dollar and commodity markets.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.