Closing Bell

Australian shares dropped on Friday, led by declines in the banking and consumer staples sectors. The S&P/ASX 200 Index reversed early gains, down 0.5% to 8287.1

Australian shares pulled back on Thursday, with the S&P/ASX 200 shedding 0.4 per cent (30.1 points) to 8319. All 11 main sectors ended in negative territory, led by weakness in energy and industrials. Oil prices dipped, dragging Woodside Energy 1.1 per cent lower, while Transurban lost 0.5 per cent. A 0.8 per cent lift in November retail sales undercut expectations and clouded hopes for a quick rate cut next month, despite concerns that spending may have been spread throughout the month.

The Australian sharemarket commenced 2025 with gains, driven by momentum trading and a rally in energy stocks. The S&P/ASX 200 climbed 0.5% to close at 8201.2, recovering from a volatile morning session that briefly dipped into negative territory. Ten of the 11 sectors advanced, led by energy, materials, and real estate, each gaining over 1%, while consumer staples ended slightly lower.

ASX Leaders and Losers for 2024

Australian shares hit a three-month low on Friday, with the ASX slipping 1.2% to 8067.70, its lowest since September. The index has dropped nearly 3% this week, driven by a broad sell-off led by banks and consumer discretionary stocks.

The Australian sharemarket hit a six-week low on Thursday, with the S&P/ASX 200 plunging 1.9% (157 points) to 8152.40 by mid afternoon, amid a global sell-off following the US Federal Reserve’s caution on interest rate cuts. The Fed reduced its forecast for 2025 cuts from three to two, leading to a spike in the US dollar and a drop in the Australian dollar to US62.25¢. Bitcoin also retreated.

Australian shares edged lower on Wednesday as investors adopted a cautious stance ahead of the U.S. Federal Reserve’s final policy decision for the year. The ASX 200 fell 13.2 points, or 0.2%, to close at 8300, reversing an early-session uptick. Meanwhile, the All Ordinaries Index rose 0.3%.

The S&P/ASX 200 rose 0.8% (66.9 points) to 8316.40 on Tuesday, supported by gains in the major banks, while falling oil prices weighed on energy stocks. The All Ordinaries Index also climbed 0.8%.

The ASX closed 0.6% lower on Monday, down 46.5 points to 8249.5, marking its fifth consecutive day of declines.

Australian shares hit a four-week low on Friday, with the S&P/ASX 200 falling 0.6% to 8280.8 by midday, extending Thursday’s 0.3% drop. The index has lost 1.7% this week, marking its sharpest decline since August, as investors grapple with a robust jobs report that dampened hopes for a near-term Reserve Bank rate cut.

Australian shares dipped in early trading, extending losses from the previous session as profit-taking persisted. The S&P/ASX 200 fell 17 points, or 0.2%, to 8376 points by mid afternoon, with tech stocks leading the decline after a 4% drop on Tuesday. WiseTech and Xero slid 2.7% and 1.6%, respectively.

The ASX has recovered some losses following a dovish stance from the Reserve Bank of Australia (RBA), which left the cash rate unchanged at 4.35%. The central bank expressed growing confidence that inflationary pressures are easing, citing softer-than-expected economic and wage growth since November. The S&P/ASX 200 is 0.2% lower, improving from a 0.6% decline earlier in the session.