04.12.202501:04:58UTC+00Australian Stocks Snap Two-Day Gain

On Thursday, the S&P/ASX 200 index declined by 0.3%, settling around 8,570, as it terminated a two-day upward trend. This downturn was primarily driven by declines in gold stocks and sectors sensitive to interest rates, which overshadowed gains observed in the mining sector. Notably, shares of gold mining companies Newmont and Northern Star each fell approximately 1.9%, leading to a 1.3% reduction in the broader gold sector. The financial and real estate sectors experienced declines as well, with banks and property stocks down by 0.4% and 2.2%, respectively. Among the major banks, three out of four reported losses. Property giant, Goodman Group, decreased by 1.5%. Recently released Q3 GDP figures and persistent inflation have bolstered the perspective that economic growth could be reaching its zenith, shifting expectations towards a possible interest rate increase. October saw household spending outperform forecasts, marking the most significant rise since January 2024, further underpinning the rate hike speculations. Conversely, mining heavyweights reached new heights with over 1% gains, propelled by copper prices hitting record levels due to a weaker dollar and supply concerns. Industry leader BHP surged nearly 3% to its highest point in a month, while Rio Tinto climbed 2.4% to achieve a new record high.