FX.co ★ Australian Shares Little Changed, Set for Strong Yearly Gains

The S&P/ASX 200 index remained largely stable at approximately 8,703 during the final trading session of the year on Wednesday, mirroring the subdued overnight performance of Wall Street. US stocks showed little movement as investors balanced their expectations of sustained economic resilience and potential rate cuts by the Federal Reserve, against rising concerns regarding potentially inflated valuations in AI-related stocks. In Australia, Reserve Bank Governor Michele Bullock, during her post-meeting press conference, indicated that while the board did not specifically deliberate on a rate hike, they did explore scenarios that might necessitate an increase in interest rates by 2026. Among the market sectors, banking stocks were the primary losers, with Commonwealth Bank declining by 0.6%, Westpac dipping by 0.8%, NAB reducing by 0.7%, and ANZ decreasing by 0.5%. Conversely, gold mining companies outperformed due to stronger bullion prices, with Northern Star Resources rising by 1.3% and Evolution Mining increasing by 1.1%. Overall, the benchmark index is poised to achieve robust gains for the year.