Sydney, Jan 22, 2026, 21:49 AEDT — Market closed
Australia’s S&P/ASX 200 climbed 0.8% to close at 8,849 on Thursday, ending a three-day skid. Energy and banks pushed gains, while miners slipped 1.6%, weighed down by gold stocks. Santos rose roughly 5%, South32 also gained 5%, but Northern Star tumbled 8.8% after reporting weaker quarterly results.
The bounce counts as global risk appetite remains volatile, driven by headlines, with Australian equities following the flow. Markets found footing after U.S. President Donald Trump dismissed plans to seize Greenland by force and backed off threatened tariffs on several European allies, pushing Wall Street to its strongest day in two months. Gold retreated from record peaks.
Investors at home had to recalibrate rate expectations after a strong labour report. The unemployment rate dropped to 4.1%, while December employment surged by 65,200. This lifted market bets on a Reserve Bank of Australia hike at the Feb. 3 meeting to about 57%. The Australian dollar climbed to roughly $0.68, and three-year yields hit a two-year peak at 4.238%. Harry Murphy Cruise from Oxford Economics Australia highlighted trimmed-mean inflation—a gauge excluding volatile price changes—as key, pinpointing 3.2% as the crucial figure.
Energy got a boost from Santos, which expects higher production in 2026 as Barossa gas and the Pikka oil project come online. The company also confirmed that the first cargo from the restarted Darwin LNG plant is currently being loaded for Japan. Citi analyst Tom Wallington said this shipment could “allay investor concerns” following earlier commissioning delays. CEO Kevin Gallagher added that Barossa and Pikka should increase output by roughly 25% to 30% by 2027 compared with 2024 levels. Reuters
Oil prices, often a bellwether for energy stocks, turned volatile as geopolitical tensions eased. Brent crude dipped 0.9% to $64.63 a barrel. Ole Hansen at Saxo Bank noted a “deflation of risk premium” after the tariff threat on Greenland was withdrawn. Tony Sycamore from IG expects oil to stay near $60 a barrel as traders reassess supply concerns. Reuters
Regulators made waves in local finance and tech again. Australia’s financial crime watchdog has ordered an external audit of payments platform Airwallex over suspected lapses in anti-money laundering and counter-terrorism financing controls. AUSTRAC chief Brendan Thomas flagged concerns about how Airwallex detects and reports suspicious activity. Airwallex said it would cooperate fully with the investigation.
On Friday, traders will keep an eye on whether the rebound sticks amid firm yields and a steady currency. They’ll also watch if the selling pressure on gold-linked miners extends to the wider resources sector. Much hinges on offshore market moves ahead of the U.S. close, plus whether oil continues to slide or manages to catch a bid.
The risk is clear: hotter-than-expected inflation could push rate pricing sharply higher, weighing on housing-related and high-multiple stocks, despite a short-term boost for banks. Should inflation ease, focus might shift to global growth and commodity demand — along with whatever news Washington delivers next.
Wednesday, Jan. 28 at 11:30 a.m. AEDT brings the December 2025 ABS CPI report, a key domestic indicator. The RBA’s next decision comes shortly after, on Feb. 3 at 2:30 p.m. AEDT.
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