Australian shares finally stopped slipping after four straight losing days, thanks to a boost from the country’s biggest banks.
Overall market move
The S&P/ASX 200 rose 0.2% to finish at 8,727.8 points, the highest close since December 24. Trading was light, with volume at about 40% of the month’s average, as many investors were still easing back into the market after the New Year holidays.
Banking stocks lead the gain
Financial stocks added 0.4% on the day, the biggest jump in more than a week. The four major Australian banks each climbed between 0.4% and 0.8%.
When uncertainty eases even a little, investors tend to move money into these big banks first. They are seen as stable dividend payers with solid balance sheets, especially as the Reserve Bank of Australia signals that interest rates may stay higher for longer.
Gold miners pull back
Gold‑mining shares fell 1.5%, led by Northern Star Resources, which cut its annual production forecast. The broader mining group that tracks gold miners ended the day flat.
Other highlights
- Nickel Industries hit a one‑year high after Sphere Corp bought a 10% stake in its Indonesian project.
- Investors are watching upcoming inflation data (due Jan 7) and labor figures later in the month to gauge the Reserve Bank’s next move.
- New Zealand’s market was closed for a public holiday.
What to watch next
All eyes are on the Australian inflation numbers and the February Reserve Bank meeting. A clearer picture of price pressures could shape interest‑rate expectations and influence where money flows next.
Remember, this is just my view, not a prediction. Do your own research before making any investment decisions.