FX.co ★ Australian Market Pares Early Gains

On Thursday, the S&P/ASX 200 Index experienced a modest increase of 0.2%, closing at 8,592. This rise came as initial gains were tempered by the robust performance in the mining sector, which overshadowed declines in technology stocks. The mining sub-index notably advanced by 0.7% to reach a new peak, buoyed by stronger metal prices. Key players such as BHP Group and Rio Tinto saw their shares increase by 1.3% and 1.8%, respectively. Meanwhile, gold stocks experienced a modest rise of 0.3%, benefiting from an uptick in bullion prices following the US Federal Reserve's decision to cut interest rates.

Conversely, the local technology sector faced a setback, with shares falling by 1.5%. This marked the fourth consecutive day of decline, bringing the index to a three-week low. The downturn mirrored the slide in US tech giant Oracle, whose disappointing earnings reignited investor concerns about the financial outlook of AI-related investments. Prominent sector players, including Wisetech Global, Xero, and Technology One, saw their shares decrease between 1.3% and 2.2%.

Investors also turned their attention to Australia's November employment report, which unexpectedly revealed the sharpest drop in employment figures in the past nine months, even as the unemployment rate remained stable. This data came shortly after the Reserve Bank of Australia (RBA) decided to maintain current interest rates and indicated no immediate plans for additional rate cuts.