FX.co ★ Australian Stocks Finish Higher

The S&P/ASX 200 saw a modest increase of 0.1% on Thursday, closing at 8,773, as it attempted to recover from the losses encountered in the previous session. This recovery was largely driven by gains in the mining and energy sectors. The mining sector experienced a significant boost, with copper prices climbing to a 15-month peak following Freeport-McMoRan's announcement of force majeure at their Grasberg mine in Indonesia. The mining sector index soared by 1.7% to hit its highest point in almost 21 months. Notably, industry leaders BHP and Rio Tinto both advanced by 3.6%. In the energy sector, companies saw an increase of 1.9%, spearheaded by Woodside, up 2.5%, and Santos, up 2.1%, as oil prices climbed due to an unexpected decrease in US crude stockpiles. Conversely, gold mining stocks declined by 1.7% as gold prices fell back from their record highs, with Northern Star slipping nearly 2%. The financial sector, which is sensitive to interest rate movements, displayed mixed results. The Commonwealth Bank of Australia (CBA) fell by 0.4%, while Westpac rose by 1.3%. Overall, market sentiment was cautious following recent data revealing that consumer prices in August exceeded expectations, leading investors to adjust their expectations regarding imminent rate cuts from the Reserve Bank of Australia (RBA). Current market pricing indicates a slender 6.5% likelihood of a rate cut next week and a 38.2% chance in November.