FX.co ★ Australian Shares Snap 3-Session Decline

In early Thursday trading, the S&P/ASX 200 rose by 0.8% to approximately 8,850, ending a three-day decline. This growth mirrored gains on Wall Street, driven by a softening in US-Europe tensions. Investors were also digesting the latest domestic labor market data, which revealed a drop in the unemployment rate to a seven-month low of 4.1% in December. This decline was attributed to a surge in employment by 65,200, primarily from full-time jobs, reinforcing the Reserve Bank's perspective that the labor market remains tight. This data, along with the upcoming quarterly inflation report, will be pivotal considerations for policymakers before the February meeting. Meanwhile, Donald Trump retracted his tariff threats against Europe and clarified he would not use force to obtain Greenland, further stating that a framework for an agreement had been achieved. Leading the market gains were rate-sensitive sectors such as banking, real estate, and consumer discretionary stocks. Energy company Santos saw an increase of 3.1%, buoyed by projections of increased output by 2026, while mining heavyweight Rio Tinto reached a record high. Conversely, gold miners experienced declines as bullion prices softened.