-The ASX200 enjoyed much better momentum on Friday, but the index nevertheless slipped into another small loss for the week. If hope springs eternal, then some pundits might still be hoping for at least a glimmer of a Santa Rally into next week and the closing week of the year.
-The Australian share market continues to suffer under the prospect of a live RBA meeting in February, with more banks and brokers joining the chorus for a 25bps rate hike to start the year. This will coincide with the half-yearly earnings reporting season, which could make for some interesting results, outlook statements and share price volatility (more I can hear you groaning!).
-Weak oil prices and the resignation of Meg Woods from Woodside Energy ((WDS)) to head up BP (the first female CEO of a global oil major) saw the energy sector get the wooden spoon for worst sector performance, down over -6%, with healthcare back out of favour, down more than -3%. Info Tech slipped some -2%.
-Conversely, financials experienced buying, most likely on the prospect of higher interest rates domestically in 2026, with the sector up 0.45%. Industrials and utilities also found favour.
-The US Santa Rally is also struggling to materialise with unwavering bifurcation around the AI thematic, the bears mauling Oracle over debt concerns and data centre overbuilding and the bulls, Morgan Stanley, JP Morgan and Goldman Sachs, to name just a few, who continue to view the outlook as robust. First quarter 2026 earnings season will be an important test for AI stocks and the US markets.
-Next week, the RBA December meeting minutes are out on Tuesday along with 3Q US GDP, with US weekly jobs claims on Wednesday.
The team at FNArena would like to wish you a safe and happy weekend.
For those readers heading off on holidays, we want to wish you a Merry Christmas and Happy New Year and thank you for all the support over the year.
FNArena will be operating next week until the ASX200 closes.
