29.01.202606:11:07UTC+00Australian Stocks End Slightly Lower

On Thursday, the S&P/ASX 200 experienced a slight decline of 0.1%, closing at 8,928. This reduction narrowed losses from the earlier session, as sectors sensitive to interest rates saw declines that counteracted the gains made by gold and leading mining companies. The market sentiment was negatively impacted by recent data indicating an unexpected rise in core inflation last quarter, which intensified expectations of a 70% likelihood for an interest rate hike by the Reserve Bank of Australia at their upcoming meeting. The financial sector decreased by 0.3%, while real estate stocks dipped by 0.2%, as fears grew that higher borrowing costs could potentially suppress property demand. In addition, rare earth miners fared poorly following reports about a possible reduction in the US government's support for critical minerals projects under the Trump administration. This development particularly affected Lynas, which dropped by 3.7%, and Iluka, which plummeted by 14.1%. Iluka also announced a significant non-cash impairment charge related to its mineral sands division. Despite these sector-specific challenges, the broader mining sub-index saw a 1% increase, helping to limit overall sector losses. Furthermore, gold and energy stocks posted advances of 1.3% and 0.9%, respectively, driven by elevated commodity prices.