The S&P/ASX 200 advanced by 0.4%, surpassing the 8,595 mark on Thursday, effectively recovering from the previous session's losses. This upward trend was bolstered by positive influences from Wall Street overnight. Market sentiment received a boost after U.S. President Trump indicated no plans to dismiss Federal Reserve Chair Jerome Powell, which alleviated concerns regarding central bank independence. Domestically, investor attention shifted to Australia's June employment report, anticipating the unemployment rate to remain at 4.1% for the sixth consecutive month, with the addition of 20,000 jobs. The Reserve Bank of Australia will be closely analyzing these numbers, as robust labor market data could lessen expectations of a rate cut in August. Conversely, weaker figures might strengthen the argument for monetary easing.
On the corporate front, Santos reported second-quarter production of 22.2 million barrels of oil equivalent, consistent with last year’s production and up by 1% compared to the first quarter. Within the index, gold mining companies led the gains, increasing nearly 1% amid rising bullion prices, exemplified by Newmont's 1.7% rise. Major banks also experienced positive movement, with Commonwealth Bank of Australia (CBA) and Westpac both advancing by 0.4%.
