The ASX200 closed 12 points (0.15%) higher at 8,592, with gains led by Materials (+0.89%), Real Estate (+0.66%)and Energy (+0.58%). Weakness in IT (-1.48%), Health Care (-1.07%) and Telcos (-0.70%) offset some of the early strength.
The session was highly volatile. The index jumped 85 points (0.92%) at the open to a four-week high of 8,658.9 after the US Federal Reserve cut rates and delivered a less-hawkish outlook. That optimism quickly reversed when Oracle’s earnings rattled the global AI trade, sending US equity futures sharply lower and dragging local sentiment with them.
Domestic data added to the turbulence.
Australia lost 21,000 jobs in November, sharply missing forecasts for a 20,000 gain. The unemployment rate held steady at 4.3%, beating expectations only because the participation rate fell to 66.7% from 67.0%. Signs of labour market deterioration pushed bond yields lower, with markets now pricing in 45bp of RBA rate hikes by end-2026, down from 56bp the previous day.
Notable stock movers included:
- Myer +9.8% to $0.45, posting record Black Friday sales and confirming Solomon Lew’s April board appointment.
- James Hardie +7.13% to $30.51, supported by a bullish broker note.
- Megaport –3.06% to $13.29, following completion of a non-underwritten SPP.
- Flight Centre +5.37% to $14.72, after acquiring Iglu Cruise for £50 million and lifting FY profit guidance to $315–350 million.
United States: markets shake off Oracle shock as rotation fuels Dow record
US equity markets again demonstrated resilience, recovering from a steep tech-led selloff triggered by Oracle’s 10.83% decline to US$198.85 after warning that annual capex would run US$15 billion higher than planned. Concerns of an AI-driven bubble initially dragged futures and the Nasdaq lower.
Yet by the close, investors rotated decisively into cyclicals and value stocks following the Fed’s rate cut. The Dow Jones surged 646 points (1.3%) to a record high, while the S&P 500 added 0.2%, though the Nasdaq slipped 0.3% as pressure on mega-cap tech persisted. The Philadelphia Semiconductor Index lost 0.8%, with Nvidia down 1.5%.
Elsewhere in the AI ecosystem:
- Broadcom +2.40% after-hours to US$416.16, beating expectations and providing strong guidance while emphasising hyperscaler spending trends.
- Disney +2.42% to US$111.46, after unveiling a US$1 billion investment in OpenAI, signalling its strategic push into AI-enabled media and content.
- Visa rose 6.1%, named a “preferred quality compounder” for 2026 by Truist, while Mosaic also climbed 6.1% following reports Ukraine had struck Russian fertiliser facilities.
Europe: Markets advance as rate cut momentum and bank strength underpin gains
European markets closed higher as investors responded positively to the Fed’s policy easing. The FTSEurofirst 300 rose 0.5%, supported by strength in financials, while the UK FTSE 100 also advanced 0.5%.
Central bank dynamics added further interest. The Swiss National Bank held rates at 0%, highlighting an improved outlook following progress on US tariff reductions, despite inflation undershooting expectations. The region-wide banking index gained 1.3%, with BBVA up 2.3% after wrapping up its share buyback program.
Overall, sentiment across the continent strengthened in step with the global shift toward a less restrictive monetary environment.
Currencies: USD softens as rate expectations shift
Major currencies strengthened against the US dollar as traders adjusted to the Fed’s more dovish posture.
- Euro: rose from US$1.1682 to US$1.1762, holding near US$1.1740 at the US close.
- Aussie: firmed from US66.26c to US66.74c, settling near US66.60c.
- Yen: strengthened from JPY156.15 to JPY154.94, later trading around JPY155.60.
The broad-based USD pullback reflected expectations of easing US financial conditions and moderated economic risks.
Commodities: copper hits record, gold surges, oil slips on geopolitics
Commodity markets diverged as geopolitical factors, risk appetite and currency moves shaped trading.
Energy
Oil prices retreated as attention returned to Russia–Ukraine peace discussions and potential fallout from a US seizure of a sanctioned tanker off Venezuela.
- Brent –1.5% to US$61.28/bbl
- WTI –1.5% to US$57.60/bbl
Metals
Base metals were broadly stronger.
- Copper jumped 2.9% to an all-time high, propelled by USD weakness and Fed easing.
- Aluminium gained 0.7%.
- Gold surged US$88.30 (2.1%) to US$4,313/oz, with spot trading near US$4,274/oz, as lower real yields boosted defensive demand.
- Iron ore slipped 0.4% to US$106.21/t, weighed down by concerns over weakening Chinese steel consumption despite hopes for policy support.
Looking ahead
In Australia, NAB holds its AGM, while Metcash trades ex-dividend, likely influencing sector-specific flows in today’s session.