The S&P/ASX 200 closed 0.3 percent stronger at 8618.40 after a midday dip, with just under half of the index’s sectors finishing in positive territory. The Australian dollar held steady around US66 cents late in the session.
A decisive move in bond markets shaped much of the day’s activity. Yields pushed to their highest levels of the year amid increasing expectations that the Reserve Bank may need to resume interest rate hikes in 2025 to manage persistent inflation pressures. The 10-year yield moved towards levels not seen since late 2024, while the three-year rate also climbed.
The shift followed government data showing household spending accelerating faster than economists anticipated in October. This reinforced concerns that inflationary momentum has not eased as quickly as hoped. Australia’s trade surplus also expanded more than expected in October, adding to a run of indicators pointing to underlying economic resilience. Stronger business investment, rising home prices and robust consumption have collectively boosted confidence in the economy. However, they have also heightened the risk of renewed policy tightening when the RBA meets on December 9.
Equity market performance was heavily influenced by commodity trends, particularly in copper. Prices for the metal surged to a record high as global supply concerns intensified, driving significant gains for major producers. BHP and Rio Tinto both rallied strongly as investors continued to back their strategic pivot towards copper amid waning long-term demand growth for iron ore. South32 also benefited, supported by silver trading near its own peak following US economic data that strengthened expectations of a Federal Reserve rate cut.
Gold miners lagged as investors took profits while gold prices steadied. Several of the sector’s largest names posted declines despite the strength in other mining segments.
The financial sector delivered steady support to the broader index, with the major banks all finishing higher. Sentiment was helped by news that Bendigo and Adelaide Bank would acquire RACQ Bank’s retail loan book, a move expected to lift its net interest income. Energy stocks also firmed as oil prices held recent gains.
In contrast, real estate investment trusts were the day’s clear underperformers. Rising bond yields reduced the relative appeal of property-linked income streams, dragging down industrial, retail and office-focused trusts alike.
Global markets offered mixed signals, with Wall Street edging higher overnight on growing confidence that US monetary policy may ease further before year-end.
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