Wednesday 7th January 2026
Daily Market Update: 8 January 2026
ASX rises as inflation eases and mining gains momentum
The Australian share market posted modest gains on Wednesday, buoyed by a softer-than-expected inflation report and a surge in metal prices. The S&P/ASX 200 Index (ASX: XJO) closed 0.1 per cent higher at 8695.60 after the monthly consumer price index eased to 3.4 per cent in November. The better-than-expected reading tempered expectations of an imminent interest rate hike, with traders now assigning a 32 per cent chance of a February increase by the Reserve Bank of Australia (RBA). However, Capital Economics maintains its view that further tightening is likely, citing persistent inflation pressures and a tight labour market.
Miners led sector gains while energy lags
Eight of the 11 sectors on the Australian Securities Exchange (ASX) ended the day in positive territory, led by mining and technology stocks. Base metals surged overnight, pushing copper above $US13,300 a tonne and nickel up 7 per cent, lifting major miners. BHP Group Limited (ASX: BHP) rose 1 per cent to $47.70, Rio Tinto Limited (ASX: RIO) advanced 1.6 per cent to $154.73, and Great Southern Copper Limited (ASX: GSC) jumped 4.4 per cent. Gold miners also rallied as spot gold climbed past $US4495 an ounce, with Newmont Corporation (ASX: NEM) up 2.8 per cent, Evolution Mining Limited (ASX: EVN) up 1.3 per cent, and Capricorn Metals Limited (ASX: CMM) up 1.9 per cent. Lynas Rare Earths Limited (ASX: LYC) soared 14 per cent following China’s ban on certain rare earth exports. In contrast, energy stocks declined as oil prices fell, with Woodside Energy Group Ltd (ASX: WDS) down 2.8 per cent and Santos Limited (ASX: STO) down 3 per cent, after remarks by Donald Trump regarding increased Venezuelan oil supply.
Global markets dip as economic signals diverge
US markets were mixed, reflecting conflicting economic data and shifting interest rate expectations. The S&P 500 Index (NYSE: SPX) slipped 0.3 per cent and the Dow Jones Industrial Average (NYSE: DJI) fell 0.8 per cent, retreating from recent record highs, while the Nasdaq 100 Index (NASDAQ: NDX) edged up 0.1 per cent. A sharp drop in job openings from the JOLTS report pointed to softening labour demand, though the ADP employment data showed moderate private sector hiring. The ISM Services PMI beat forecasts, hinting at a resilient economy. JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corporation (NYSE: BAC) both dropped over 2 per cent, weighing on financials. Meanwhile, NVIDIA Corporation (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL) outperformed, lifting the tech sector. In energy, Valero Energy Corporation (NYSE: VLO) and Marathon Petroleum Corporation (NYSE: MPC) advanced on news of resumed Venezuelan crude shipments, while Chevron Corporation (NYSE: CVX) lagged.
| Australian Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| ASX 200 | 0.1 | -0.7 | 0.4 | -2.9 | 7.0 |
| Financials | -1.1 | -3.1 | -0.2 | -6.3 | 4.7 |
| Resources | 0.9 | 1.7 | 3.9 | 10.8 | 35.2 |
| Information Technology | 0.9 | -0.9 | -5.0 | -20.7 | -12.9 |
| Global Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| US 500 | -0.3 | 0.5 | -0.5 | 1.2 | 9.1 |
| Europe | -0.6 | 0.9 | 2.4 | 3.5 | 24.2 |
| Japan | -1.5 | 3.3 | -0.7 | 0.2 | 16.1 |
| China top 50 | -2.2 | 3.3 | -0.7 | -4.6 | 27.5 |
| India top 50 | -1.0 | -1.2 | -1.7 | 0.1 | -4.3 |
| Fixed Interest | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Australian Treasury Bond | -0.6 | -0.6 | -0.6 | -1.8 | 2.3 |
| Australian Corporate Bond | -1.1 | -0.7 | -0.7 | -1.7 | 2.9 |
| US Treasury | 0.2 | 0.0 | 0.1 | 0.7 | 5.9 |
| Cash | -0.3 | -0.3 | 0.0 | 0.6 | 3.7 |
| Commodities & Crypto | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Gold | -0.6 | 3.3 | 4.4 | 10.4 | 55.1 |
| Silver | 1.0 | 8.0 | 33.2 | 58.4 | 139.0 |
| Crude Oil | -2.9 | -0.5 | -4.4 | -5.9 | -11.5 |
| Bitcoin | -1.8 | 3.0 | -0.4 | -27.3 | -12.2 |
