Sydney, Jan 24, 2026, 17:29 AEDT — Market closed
- ANZ slipped 0.52% to close at A$36.21 on Friday
- Union pushback on Suncorp Bank job cuts keeps political risks front and center
- Traders are focused on upcoming inflation figures and the RBA’s decision set for early February
ANZ Group Holdings Ltd (ANZ.AX) shares slipped 0.5% on Friday, closing at A$36.21 as investors digested news of a new dispute over job cuts linked to the Suncorp Bank integration. The Finance Sector Union of Australia reported that 197 roles were impacted, with 66 staff expected to lose their jobs, primarily in Brisbane. Union president Wendy Streets said the union has “not seen the evidence” supporting ANZ’s claim that it is honoring its commitments. ANZ, for its part, maintained it was “firmly committed” to the promises made when acquiring Suncorp’s banking operations. 1
ANZ’s decline came amid pressure on rate-sensitive financials, which weighed on the broader market’s gains Friday. The “big four” banks slipped between 0.2% and 0.8%, even as the S&P/ASX 200 inched up 0.13%. Markets are pricing in about a 60% chance of a 25-basis-point rate hike by the Reserve Bank of Australia at their Feb. 3 meeting. Marc Jocum, investment strategist at Global X ETFs Australia, noted that while higher rates can boost margins, mortgage volumes tend to take a hit. 2
The day before, sentiment was quite different. The ASX 200 surged 0.8% on Thursday, with financials jumping 1.9% — marking their largest single-day gain since late October. Traders snapped up bank stocks after earlier declines and absorbed the unexpected jobs data. “Stronger employment data” fueled optimism for improved net interest margins and profitability, said Tim Waterer, chief market analyst at KCM Trade. 3
The jobs shock is both real and fresh. The Australian Bureau of Statistics reported the seasonally adjusted unemployment rate dropped to 4.1% in December, with employment climbing by 65,000, driven by a 55,000 increase in full-time positions. 4
Currency markets reacted sharply to the same data. The Australian dollar climbed to a 15-month peak following the labour report. Reuters noted that the odds of a February rate hike surged to 54% from 27%, with traders now fully pricing in a quarter-point rise by May, pushing expectations for the cash rate, currently at 3.6%, higher. 5
For ANZ and its rivals, rising rates present a double-edged sword. On one hand, they boost the net interest margin—the difference between earnings on loans and costs on deposits. On the other, they risk slowing new borrowing and driving up arrears as household finances come under pressure.
The Suncorp case brings a unique sensitivity. The union argues the redundancies violate the spirit of the acquisition commitments, injecting a political and regulatory dimension right as ANZ pushes to streamline operations and reduce expenses.
Next week’s inflation data or any move from Canberra could shake up the trade. A strong print might push expectations toward an early rate hike, raising concerns over mortgage demand and credit quality. On the other hand, a weaker figure would leave rate-bulls with less ammunition—at least for the moment.
ANZ’s next trading session is set for Tuesday, since the ASX will be shut on Monday in observance of the Australia Day public holiday. 6
All eyes turn to the CPI report due Wednesday, Jan. 28 at 11:30 a.m. AEDT. Then the RBA meets Feb. 2–3, with markets bracing for a potential rate change. Bank investors are alert to any ripple effects. 7
