Daily Market Update: 12 January 2026

Australian market ends the week flat, impacted by banking and mining companies 

The Australian share market closed the first full week of 2026 slightly lower, with the S&P/ASX 200 Index (ASX: XJO)slipping 0.1 per cent. Initial optimism faded as investors rotated out of major financial stocks. The financial sector was the main drag, with declines in Macquarie Group Limited (ASX: MQG) down 1.3 per cent, Australia and New Zealand Banking Group Limited (ASX: ANZ) by 0.6 per cent, Westpac Banking Corporation (ASX: WBC) by 0.3 per cent, National Australia Bank Limited (ASX: NAB) by 0.2 per cent, and Commonwealth Bank of Australia (ASX: CBA) by 0.1 per cent.

Rio Tinto merger talks pressure materials while energy stocks rise

In the materials sector, Rio Tinto Limited (ASX: RIO) plunged 6.3 per cent to $143.06 after confirming merger talks with Glencore plc (LSE: GLEN) in a potential all-stock deal that could create a $300 billion mining giant. Fortescue Limited (ASX: FMG) edged down 0.2 per cent, while BHP Group Limited (ASX: BHP) rose 0.8 per cent. Energy stocks led gains as Brent crude prices surged on declining US inventories and Venezuelan supply concerns, with Woodside Energy Group Ltd (ASX: WDS) climbing 2.8 per cent, Santos Limited (ASX: STO) up 3.5 per cent, and Beach Energy Limited (ASX: BPT) also adding 2.8 per cent. Among standout performers, Drone Shield Limited (ASX: DRO) rose 4.4 per cent on US defence spending optimism, while Codan Limited (ASX: CDA) soared 16.9 per cent on strong earnings guidance. Gains were also seen in Mesoblast Limited (ASX: MSB), Aristocrat Leisure Limited (ASX: ALL), BlueScope Steel Limited (ASX: BSL), and Woolworths Group Limited (ASX: WOW).

Global markets maintain steady growth 

The S&P 500 Index (US: SPX) climbed 0.7 per cent to a record close of 6966.28, nearing the 7000-point milestone, after softer-than-expected US job growth in December led traders to reduce expectations for an imminent Federal Reserve rate cut. The Nasdaq Composite Index (NASDAQ: IXIC) gained 0.8 per cent, while the Dow Jones Industrial Average (INDEXDJX: DJI) was lifted by strong performances from Home Depot Inc. (NYSE: HD), The Sherwin-Williams Company (NYSE: SHW), and The Boeing Company (NYSE: BA). Materials and utilities led sector gains on the S&P 500, with standout stock rallies from SanDisk Corporation (NASDAQ: SNDK), Intel Corporation (NASDAQ: INTC), and Lam Research Corporation (NASDAQ: LRCX). Gold and silver surged, while the US unemployment rate eased to 4.4 per cent, highlighting the economy’s resilience despite subdued job creation.