The Australian stock market is experiencing a slight downturn on Thursday following an encouraging start, continuing the declines from the previous two trading sessions. This trend aligns with the mixed signals received from Wall Street overnight. The S&P/ASX 200 index remains below the 8,400 mark, as strong local employment figures dampen expectations for an early interest rate reduction in 2025.
Currently, the S&P/ASX 200 index is down by 5.10 points or 0.06 percent, standing at 8,348.50, after having reached a high of 8,386.40 earlier in the day. Similarly, the broader All Ordinaries index has decreased by 3.60 points or 0.04 percent to 8,606.80, following notable losses in Australian stock prices on Wednesday.
In the mining sector, Mineral Resources has increased nearly 1 percent, while Fortescue Metals and Rio Tinto have seen slight increases ranging from 0.2 to 0.4 percent. Conversely, BHP Group has experienced a minor decline of 0.1 percent.
Oil stocks are generally performing well. Woodside Energy and Santos have risen by 0.1 to 0.2 percent, with Beach Energy seeing a significant surge of more than 7 percent. On the other hand, Origin Energy has fallen by almost 1 percent.
In the technology sector, Block, the owner of Afterpay, has risen by more than 4 percent. WiseTech Global is up over 1 percent, and Appen is advancing by nearly 4 percent. Additionally, Zip and Xero have gained approximately 2 percent each.
Among the significant banks, Commonwealth Bank, Westpac, and National Australia Bank have each risen by 0.1 to 0.3 percent, whereas ANZ Banking has slightly declined by 0.1 percent. In the gold mining sector, Evolution Mining has grown by nearly 1 percent, and Gold Road Resources is up by 0.5 percent. Moreover, Resolute Mining and Newmont have both increased by over 1 percent, while Northern Star Resources has dipped by 0.3 percent.
Regarding economic developments, the Australian Bureau of Statistics reported an unemployment rate of 3.9 percent for November, seasonally adjusted. This figure is lower than the forecast 4.2 percent and represents a decline from October's 4.1 percent. The participation rate stands at 67.0 percent, slightly below the expected 67.1 percent.
In currency news, the Australian dollar is trading at $0.641 on Thursday.
Turning to Wall Street, U.S. stocks mostly advanced on Wednesday, recovering robustly from the week's initial pullback. The Nasdaq, dominated by technology stocks, demonstrated a particularly strong surge, closing above the 20,000 milestone for the first time. The Nasdaq index climbed by 347.65 points or 1.8 percent, reaching a record high of 20,034.89. The S&P 500 rose by 49.28 points or 0.8 percent to 6,084.19. Conversely, the narrower Dow struggled for direction throughout the session, eventually closing down by 99.27 points or 0.2 percent at 44,148.56.
In Europe, major markets showed upward momentum. The French CAC 40 index rose by 0.4 percent, while the German DAX index and the U.K.'s FTSE 100 index both increased by 0.3 percent.
Crude oil prices climbed on Wednesday, influenced by the prospect of European Union sanctions on Russia, anticipation of higher demand from China, and data revealing a significant jump in gasoline stockpiles. West Texas Intermediate crude oil futures for January saw a rise of $1.70 or 2.5 percent, closing at $70.29 a barrel.
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