FX.co ★ Australian Shares Finish Higher

The S&P/ASX 200 concluded the day with a 0.3% increase at 8,618 on Thursday, achieving its third successive session of growth. This rise was driven by robust performance in rate-sensitive financial stocks and major mining companies. The financial sector notably ended 0.6% higher, buoyed by the anticipation that rising interest rates will expand bank margins and enhance profitability. Investor speculation regarding a possible interest rate hike intensified following a 1.3% jump in household spending in October, the highest since January 2024. This development, along with a robust third-quarter GDP result and heightened inflation metrics, has led market swaps to indicate a 50% probability of a rate hike as early as May next year. The "Big Four" banks all saw gains, with ANZ leading and advancing by 1.7%. Moreover, the mining sector advanced by 0.8% to reach a historic high, fueled by copper prices hitting unprecedented levels amid a weakened dollar and supply concerns. Major player BHP surged by 3.6% to hit a one-month high, while Rio Tinto climbed by 3.9% to achieve a record high after raising its copper production forecast for 2025.