07.01.202601:15:44UTC+00Australian Shares Rise on Softer Inflation

On Wednesday, the S&P/ASX 200 index experienced a 0.3% uptick, reaching approximately 8,710, as it rebounded from the previous session's losses. This recovery was spurred by a softer-than-anticipated inflation report, which alleviated worries about an impending interest rate increase. The latest data indicated a slight cooling in underlying inflation for November, with the headline Consumer Price Index (CPI) climbing 3.4% year-on-year. This was a decrease from October's 3.8% and fell short of the 3.6% that was anticipated. Moreover, the closely-monitored trimmed mean measure declined from 3.3% to 3.2%. These statistics bolster the argument that the Reserve Bank of Australia might decide to maintain current interest rates for the time being, leading markets to reduce the odds of a rate hike in February from 40% to 30%. The mining sector was the forefront of the day's gains, rising by 0.7% to reach a new peak, buoyed by robust commodity prices. Industry giants BHP and Rio Tinto saw increments of 0.4% and 0.6%, respectively. Additionally, gold stocks surged by 1.4% as investors sought safe-haven assets in response to US military actions in Venezuela. Conversely, the energy sector experienced a 0.9% decline as oil prices dipped due to an abundant global supply and uncertainties surrounding Venezuelan production levels.