FX.co ★ Australian Shares Start Year Steady

On Friday, the S&P/ASX 200 hovered around the 8,720 mark, as the first trading day of the year showed little movement due to a combination of cautious market sentiment and limited trading activity during the holiday period. Investors remained cautious following a late December downturn on Wall Street and prepared for the upcoming inflation data release next week, which could shape the Reserve Bank of Australia's policy decisions, including a potential interest rate increase this year.

Mining stocks displayed varied performances. Key players in the sector provided slight momentum, with BHP Group advancing 0.3%, Rio Tinto climbing 0.5%, and Fortescue Metals gaining 0.4%. However, gold mining stocks showed mixed results; notably, Northern Star Resources experienced a sharp decline of approximately 10% after revising its annual production forecast downward due to operational hurdles.

Banks, another vital facet of the market, saw modest gains; Commonwealth Bank rose by 0.2%, Westpac Banking Corporation by 0.3%, and National Australia Bank also by 0.3%. With no significant corporate earnings reports expected in Australia this week, investors kept their attention on macroeconomic indicators.