Sydney, Jan 7, 2026, 21:56 AEDT — Market closed
Australian shares ended slightly higher on Wednesday after a softer inflation print, as miners and rare-earth stocks outweighed a slide in banks. The S&P/ASX 200 added 12.8 points, or 0.15%, to 8,695.6, while the All Ordinaries rose 0.23% to 9,018.0. Lynas Rare Earths jumped 14.5%, but Commonwealth Bank, Westpac, ANZ and National Australia Bank fell 1.5% to 2.0%, and the benchmark clawed back only part of Tuesday’s 0.43% decline.
Data from the Australian Bureau of Statistics showed consumer prices rose 3.4% in the year to November, slowing from 3.8% in October. The trimmed mean — a core gauge that strips out large moves — eased to 3.2%, keeping the focus on how soon the Reserve Bank of Australia might move again; December and quarterly CPI data are due on Jan. 28.
Westpac chief economist Luci Ellis called the result a “very pleasant surprise” and said there was “a lot of noise in the data” as electricity rebates roll off. She told ABC News that Commonwealth Bank and NAB still expect a 25-basis-point (a quarter-point) hike in February, while ANZ and Westpac see the cash rate staying at 3.6%; the Australian dollar slipped to 67.28 U.S. cents after the data. ABC
Rare-earth shares drew fresh buying after China imposed export controls on dual-use items — goods with both civilian and military uses — to Japan, a move Tokyo condemned as “absolutely unacceptable”, Reuters reported. Economists cautioned the stand-off could widen to rare-earth supplies, a risk for manufacturers that still rely heavily on Chinese output and refining. Reuters
Commodity markets added to the bid for miners. Copper broke above $13,000 a tonne and set a record this week, while gold traded above $4,495 an ounce as investors paid up for havens amid geopolitical risk.
Energy shares lagged as oil prices fell. Brent crude slipped about 1% to around $60 a barrel after U.S. President Donald Trump said Venezuela would send 30 million to 50 million barrels of oil to the United States, adding to concerns about oversupply.
The benchmark closed just under the 8,700 level after a choppy start to the year, with investors rotating between resources and bank stocks. MarketIndex said the index has been trying to get back above key moving averages.
But a cooler CPI read does not end the rate debate. Inflation remains above the RBA’s 2%-3% target band, and any rebound in electricity and services costs could revive rate-rise bets and pressure banks and other rate-sensitive sectors.
Related articles: ASX:CBA
