Australian Shares End Losing Streak as Miners Drive Market Rebound
Global Markets | Australian shares snap eight-session losing streak; miners lead broad gains
The Economic Times
Image: The Economic Times
Australian shares rose 0.7% on Friday, ending an eight-session losing streak, driven by a rebound in mining stocks following a pullback in oil prices. Despite the recovery, the S&P/ASX 200 index still recorded a 1.4% loss for the week, with investors cautious ahead of upcoming central bank decisions.
- 01Australian shares rose 0.7%, marking their first gain after eight consecutive losses.
- 02Miners led the rebound, with Rio Tinto and BHP both increasing over 2%.
- 03The S&P/ASX 200 index closed at 8,729.80, but still fell 1.4% for the week.
- 04Financials struggled, particularly ANZ, which dropped 2.8% amid rising provisions for potential loan losses.
- 05Investors are closely watching the upcoming central bank monetary policy decision.
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Australian shares saw a 0.7% increase on Friday, marking the end of an eight-session losing streak, with the S&P/ASX 200 index closing at 8,729.80. The mining sector led the gains, rising 2.1%, driven by improved iron ore prices due to better Chinese factory activity, although the sector remains down 3.2% for the week. Financial stocks, however, faced challenges, particularly ANZ, which fell 2.8% after announcing increased provisions for potential loan losses linked to the Middle East conflict. The broader market still ended the week down 1.4%. Investors are now focused on the Reserve Bank of Australia's upcoming monetary policy decision, which is expected to see an 83% probability of a quarter-point rate hike. Market sentiment remains cautious as the potential for inflation concerns looms.
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The rebound in Australian shares may provide a temporary relief to investors, but ongoing concerns about inflation and potential interest rate hikes could affect market stability and investor confidence.
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