FX.co ★ Australian Stocks End Slightly Higher

The S&P/ASX 200 inched upward by 0.1% to close at 8,860 on Friday, building on momentum from the previous session as gains in gold and technology stocks buoyed the market. However, the benchmark index experienced a 0.5% decline over the week, amid heightened expectations of an imminent interest rate hike. A robust jobs report for December significantly increased the likelihood of a rate rise in February to 60%, with odds exceeding 80% for a potential hike in May. Attention now shifts to the upcoming release of quarterly inflation figures. Meanwhile, gold miners surged nearly 5% amid record-high bullion prices, with leading firms such as Northern Star and Evolution Mining each climbing over 5%. Technology stocks also performed well, advancing 3.8%, buoyed by a 27% rally in Life360's shares to their highest level since December 15, following an optimistic full-year revenue forecast of around 31–32%. Conversely, sectors sensitive to interest rate changes retreated, led by financials, with Australia's four major banks trading lower. While elevated interest rates can enhance bank profitability, they also pose a risk to the mortgage market by discouraging new borrowing.