Staff writers
Updated ,first published
The Australian sharemarket has failed to provide traders with any Christmas cheer before closing for the festive holiday, ending the day down despite a strong lead from Wall Street.
The S&P/ASX 200 ended Christmas Eve down 33 points, or 0.4 per cent, with 10 of 11 industry sectors in the red. It was a shorter trading session, with the bourse closing at 2.10pm, and it will remain closed on Christmas Day and Boxing Day before resuming trading on Monday.
However, the Australian dollar continued to rally, hitting its highest point since October 2024 at 67¢ against the US dollar, with expectations the currency could benefit from tightening interest rates in the new year.
Financial stocks ended the day lower with the big four banks all in the red; Commonwealth Bank and National Australia Bank each down 0.2 per cent, while Westpac lost 0.3 per cent and ANZ Bank fell 1 per cent.
Mining stocks were the only sector that rose, with BHP up 0.1 and Fortescue up 0.5 per cent, while Rio Tinto added 0.7 per cent. Gold miner Northern Star strengthened 1.2 per cent after the price of the safe haven hit a record, passing $US4500 for the first time.
Fertility giant Monash IVF tumbled 10.3 per cent after a consortium withdrew its offer to acquire the company.
Energy stocks were mixed, with Woodside Energy dipping 0.5 per cent while Santos remained flat. Oil prices advanced overnight, with US benchmark crude up 0.6 per cent to $US58.38 per barrel and Brent crude, the international standard, advanced 0.5 per cent to $US62.38 a barrel.
Consumer stocks are weaker ahead of the Boxing Day sales – Wesfarmers lost 0.7 per cent, while supermarket giants Coles and Woolworths both fell, down 1.5 per cent and 0.3 per cent respectively
Tech stocks fell, with WiseTech flat and Xero 2.3 per cent weaker.
On Wall Street, the US government’s first assessment of economic growth during the third quarter showed robust growth and high inflation. A separate report indicated that consumer confidence continued to fade in December. All of it added to a complicated picture of the economy.
The latest record for the S&P 500 came even as most stocks within the benchmark index lost ground. Technology stocks – the main force pushing major indexes to records all year – were once again able to counter weakness elsewhere in the market.
The S&P 500 rose 31.30 points, or 0.5 per cent, to 6909.79, surpassing the record set earlier in December. The Dow Jones rose 79.73 points, or 0.2 per cent, to 48,442.41. The Nasdaq composite rose 133.02 points, or 0.6 per cent, to 23,561.84.
Nvidia jumped 3 per cent and was the biggest force helping to push the market higher. It is among several big tech companies with outsized valuations that tend to have more impact on the broader market’s direction. Google’s parent company, Alphabet, rose 1.5 per cent.
Novo Nordisk jumped 7.3 per cent after US regulators approved a pill version of the blockbuster weight-loss drug Wegovy, the first daily oral medication to treat obesity.
Wall Street received the latest economic updates during an otherwise quiet holiday-shortened week. Markets in the US will close early Wednesday for Christmas Eve and remain closed on Christmas Thursday.
The US economy grew at a 4.3 per cent annual rate during the third quarter. That builds on 3.8 per cent growth during the second quarter and marks a sharp turnaround from the first quarter, when the US economy shrank for the first time in three years.
The latest report also showed that stubborn inflation continues to hover over the economy. The Federal Reserve’s favoured inflation gauge – called the personal consumption expenditures index, or PCE – climbed to a 2.8 per cent annual pace last quarter, up from 2.1 per cent in the second quarter.
The yield on the 10-year Treasury rose to 4.16 per cent from 4.15 per cent just before the report on gross domestic product for the third quarter was released. The yield on the two-year Treasury, which more closely tracks expectations for Fed actions, rose to 3.53 per cent from 3.49 per cent just prior to the report’s release.
The Fed has taken a more cautious policy approach amid mixed signals from the economy. Economic growth has been occurring while inflation remains stubbornly above the central bank’s 2 per cent target. The job market is also slowing, adding another layer of concern to whether the central bank should continue cutting interest rates.
On Wednesday, the Labor Department will release its weekly data on applications for jobless benefits, which stands as a proxy for US lay-offs.
The Fed has cut interest rates three times in 2025 and the central bank’s rate-setting committee is divided about additional rate cuts in 2026. The committee members, at their last meeting, projected a wide range of possibilities from holding rates steady to two or more reductions.
Wall Street expects the Fed to hold rates steady at its upcoming meeting in January.
Consumer spending and confidence have been shaky amid worries about high prices, especially with a wide-ranging US trade war that could drive prices for many goods even higher.
The latest update from business group The Conference Board showed that consumer confidence fell in December to its lowest level since tariffs were rolled out in April. Meanwhile, retail sales have been weakening, as consumers grow more cautious.
Markets were mixed in Asia and Europe.
The price of gold continued rising. It rose 0.8 per cent to $US4,505.70 per ounce on Tuesday and is up about 70 per cent for the year.
