Australian shares look set for a steady open this morning. Futures point to a muted start following a positive lead from US markets. Investors prepare for a crucial week of economic data. The S&P/ASX 200 faces resistance near record highs. Market participants expect the release of key GDP figures later this week.​
The local share market broke a four-week losing streak last Friday. It recorded its best weekly performance since May. However, the index slipped 3.2 points on Friday to close at 8,614.1. The broader All Ordinaries index managed a slight gain of 0.08 per cent. It finished the session at 8,918.7.​
ASX 200 as of 13:23 AEST
Wall Street Sets Positive Tone
US stocks climbed on Friday during a shortened trading session. Gains in retail and technology sectors drove the advance. The S&P 500 and Nasdaq hover near all-time highs. Tech stocks staged a recovery after recent volatility.​
Trading volume remained thin following the Thanksgiving holiday. Investors showed renewed appetite for growth stocks. This optimism offers a supportive backdrop for the Australian technology sector today. Local tech names often follow the lead of their US counterparts.
Commodity Prices Hold Firm
Iron ore prices showed resilience heading into the new month. The steel-making ingredient rose to US$104.84 per tonne on November 28. This represents a 0.20 per cent increase from the previous session. Prices remain higher than levels seen a year ago.​
China’s economic health continues to influence commodity markets. Recent data suggests robust demand from coastal steel mills. Port inventories in China remain elevated. However, market observers see support for prices near current levels.​
Gold prices surged on heightened expectations of US rate cuts. The spot price climbed to US$4,184 an ounce. This translates to roughly A$6,406 in local currency terms. Gold miners stand to benefit from these record price levels.​
Sector Watch: Mining and Energy
Resource stocks outperformed the broader market last week. Raw material companies surged more than five per cent over the five sessions. Major miners BHP and Rio Tinto posted weekly gains of over three per cent.​ Fortescue jumped 4.3 per cent on Friday. The company reported record iron ore shipments. Management signalled further growth as operational costs fell. Investors welcomed the positive production update.​
Rio Tinto Ltd (ASX:RIO)
Energy stocks faced headwinds late last week. Sector leaders like Santos and Woodside tracked oil price movements. Crude oil prices posted solid monthly gains of around five per cent. However, delays in price corrections create uncertainty for the sector.​
Financials and Banks Under Pressure
The financial sector weighed on the index during Friday’s session. All big four banks traded lower to end the week. The sector dropped 0.7 per cent on Friday. This decline snapped a brief recovery in bank share prices.​
Investors remain cautious about the banking outlook. High interest rates continue to impact credit growth. However, the broader financial sector managed a 0.2 per cent gain for the full week. Macquarie Group and insurers provide some stability to the sector.​
Retail and Consumer Staples Shine
Consumer staples emerged as a key defensive play. Woolworths led the sector higher with a 3.2 per cent rally. Analysts at JP Morgan upgraded the stock. This boosted investor sentiment toward the supermarket giant.​
Endeavour Group also attracted buying interest. Its shares surged almost two per cent on Friday. Investors seek reliability in staples amid broader economic uncertainty. These defensive stocks often perform well during periods of market volatility.​
The Week Ahead: GDP in Focus
The economic calendar dominates investor attention this week. The Australian Bureau of Statistics releases GDP data on Wednesday. Economists expect the figures to show modest growth. The Reserve Bank of Australia watches these numbers closely.
A strong GDP print could delay rate cuts. A weak result might accelerate monetary easing. Traders also await further updates on the US-EU trade deal. President Trump’s administration continues to reshape global trade dynamics.​
Currency and Bond Markets
The Australian dollar holds steady against the greenback. It trades near 65 US cents based on gold price conversions. Currency traders monitor the gap between Australian and US bond yields. Global interest rate expectations drive these movements.​
Bond markets imply a shifting outlook for monetary policy. Traders anticipate potential rate cuts in the US next year. This sentiment supports non-yielding assets like gold. It also influences the valuation of yield-sensitive stocks on the ASX.
Corporate News and Updates
Several companies issued significant updates before the weekend. Bapcor shares plunged 28.4 per cent after a profit warning. The auto parts retailer flagged weaker trading in May and June. It also announced $50 million in writedowns.​
Bapcor Ltd (ASX:BAP)
Lynas Rare Earths advanced five per cent. The company signed a new supply agreement with a Korean firm. This deal strengthens its position in the critical minerals supply chain. Investors responded positively to the strategic partnership.​
Karoon Energy dipped 2.8 per cent despite higher production volumes. The market focused on broader energy sector weakness. Evolution Mining fell 2.7 per cent as some investors took profits.​
Gold Miners maintain Momentum
Gold stocks remain a bright spot for the local exchange. The VanEck Gold Miners ETF hit five-week highs last week. It gained more than 10 per cent since the previous Monday.​ Northern Star Resources faces some operational challenges. The company flagged production issues at its Kalgoorlie Super Pit. Shares dropped two per cent on the news. It also scrapped its hedging policy to leverage high gold prices.​
Also Read: From LEGO Bricks to Horror Hits: Sony Reveals Expanded December PS Plus Lineup
Technology and Healthcare Outlook
Technology shares look to rebound after a mixed month. The sector follows the recovery in the Nasdaq. Companies like Xero and WiseTech often track US tech sentiment.
Healthcare stocks showed divergence in recent trading. Polynovo faced selling pressure late last week. However, CSL remains a key pillar for the index. The sector awaits further catalysts to drive momentum.​
Final Thoughts for the Morning
The market appears calm but cautious this Monday. Futures suggest a flat open with a positive bias. The ASX 200 sits just below key technical levels. A breakthrough could target new highs above 8,650.​
Traders will watch the first hour of trade closely. The performance of mining giants will likely dictate the initial direction. Banks need to stabilise to support a broader rally. The countdown to Wednesday’s GDP data begins now.
