FX.co ★ Australian Stocks End at 1-Week Low

The S&P/ASX 200 experienced a decline of 0.4%, closing at its lowest point in a week on Wednesday, marking the third consecutive session of losses. The dip was driven by a downturn in banking stocks due to ongoing concerns about interest rate hikes, while simultaneously, mining stocks reached an unprecedented closing high. The financial sector saw a decrease of 1.6% to a one-month low, with the Commonwealth Bank reaching its lowest valuation since April of the previous year. This sector has already faced a decline of nearly 3.5% this month as apprehension grows over the pressure that elevated interest rates might exert on profit margins in anticipation of the upcoming earnings season. Investors are now shifting their focus to Thursday’s domestic employment report and the impending inflation data release next week, ahead of the Reserve Bank of Australia's meeting on February 3. Despite the broader market downturn, mining stocks achieved a record high for the eighth time this month, spurred by Rio Tinto’s 2.6% rise following its announcement of better-than-expected iron ore and copper production figures for Q4. Additionally, gold mining stocks continued their upward trajectory for a third consecutive session, buoyed by increased demand for safe-haven assets in the face of global uncertainties, with Evolution Mining reaching an all-time peak after revealing enhanced production outcomes for Q2.