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The Australian sharemarket finished slightly lower on Friday as major banking stocks retraced yesterday's gains.

The S&amp;P/ASX 200 Index closed down 16.6 points or 0.2% to 8,310.4, finishing the week with marginal gains of 0.2%.

Eight of 11 sectors finished higher, despite losses in the financials and communication services sectors, following the market’s 1.4% gain on Thursday.

ANZ Group dipped 1.8%, National Australia Bank lost 1.7%, and Commonwealth Bank declined 1.2%.

Meanwhile, the materials sector added 0.4% overall, with BHP up 0.2%, Fortescue Metals adding 1.8% and Champion Iron up 2.2%.

Mining giant Rio Tinto bucked the trend, finishing 0.7% lower after Bloomberg reported that it is in merger discussions with Glencore. If completed, the deal would surpass BHP as the largest mining group globally.

Among data releases, annual economic growth in China reached 5.4% in Q4 2024, beating market expectations of 5% growth.

Among individual companies, Insignia Financial rose 6.5% after CC Capital increased its takeover bid to $4.60 per share, valuing the offer at A$3.1 billion. The revised bid follows Bain Capital’s move earlier in the week to match CC Capital’s prior $2.9 billion offer.

Lynas Rare Earths d

Markets: ASX 200 in calm finish as banks retrace gains

Gold prices have stalled their three-day rally at monthly highs as traders pause for profit-taking ahead of the inaugural ceremony of U.S. President-elect Donald Trump next Monday.

By 3:45 pm AEDT (4:45 am GMT) spot gold was trading flat at US$2,715.47 per ounce.

The precious metal showed limited reaction to stronger-than-expected economic data from China, the world’s largest consumer of gold. China’s fourth-quarter GDP grew by 5.4% year-on-year, surpassing estimates of 5%, alongside better-than-forecast retail sales and industrial production figures.

Despite the positive economic data, optimism surrounding China's growth is dampened by lingering concerns about its struggling property market and potential tariffs proposed by the incoming U.S. administration.

Meanwhile, expectations of dovish U.S. Federal Reserve policies continue to support gold prices. Following slightly weaker-than-expected inflation data, markets anticipate at least two interest rate cuts in 2024. This outlook has pressured U.S. Treasury yields and the U.S. dollar, reinforcing demand for the non-yielding precious metal.

In addition, comments from Federal Reserve Governor Christopher Waller also weighed on Treasury yields and the dollar. Speaking

Gold sits at monthly high, Trump inauguration ahead

Oil prices climbed on Friday, extending their rally to a fourth consecutive weekly gain and returning to five-month highs as market sentiment was buoyed by concerns over supply disruptions.

By 3:15 pm AEDT (4:15 am GMT) Brent crude futures gained $0.38, or 0.5%, to trade at $81.67 per barrel, recovering from a 0.9% decline in the previous session, while U.S. West Texas Intermediate (WTI) crude futures rose $0.58, or 0.7%, to $79.26 per barrel after a 1.7% drop on Thursday.

The upward pressure on prices follows the Biden administration's latest sanctions targeting Russia’s oil producers and related industries.



The measures, part of broader sanctions aimed at Moscow’s military and sanctions-evasion networks, have disrupted global oil supply chains. Russia's key customers are now seeking alternative suppliers, leading to increased shipping rates as they source barrels from distant regions.

In the Middle East, maritime security officials announced that Yemen's Houthi militia is expected to halt attacks on vessels in the Red Sea following a ceasefire agreement in Gaza between Israel and Hamas.



Despite the anticipated ceasefire, uncertainty lingers. Houthi leaders have indicated they will closely monitor the cease

Oil prices retest 5mth highs amid supply concerns

China’s economy recorded a 5.4% year-on-year expansion in the fourth quarter of 2024, exceeding market expectations as government stimulus measures began to take effect.



The result marked an improvement from the 4.6% growth recorded in the previous quarter and was higher than the 5% forecast by economists.



The NBS highlighted that, despite the stronger finish to the year, external pressures on the economy were intensifying while domestic demand remained insufficient. It called for "more proactive and effective macro policies” to address these challenges.

China's retail sales rose by 3.7% in December compared to the same period last year, surpassing expectations of 3.5%.



Industrial output also exceeded forecasts, expanding by 6.2% year-on-year in December, which highlighted the country's growing production capabilities.



However, full-year fixed asset investment increased by just 3.2%, slightly missing projections of 3.3%.

The real estate sector continued to be a significant drag on growth, with investment in the sector falling by 10.6% compared to the January to November period.



The urban unemployment rate edged up to 5.1% in December from 5.0% in November, reflecting ongoing challenges in t

China's Q4 GDP grows 5.4%, surpassing expectations

Asia-Pacific markets opened lower on Friday as investors awaited a series of economic reports from China.

By 11:35 am AEDT (12:35 am GMT), South Korea’s Kospi 200 eased 0.3%, Japan’s Nikkei 225 slipped 1.2%, and Australia’s S&amp;P/ASX 200 was down 0.1%.

China is set to release its industrial output and retail sales data for December, alongside fourth-quarter GDP figures. Markets estimate China’s GDP growth for the quarter at 5% year-on-year, up from 4.6% in the prior quarter.

Overnight in the U.S., major indices lost early gains, with the S&amp;P 500 and Dow ending three-day winning streaks amid weakness in technology stocks. The S&amp;P 500 dropped 0.2% to close at 5,937.34, while the tech-heavy Nasdaq Composite declined 0.9% to 19,338.3. The Dow Jones Industrial Average slipped 0.2% to 43,153.1.



Chinese equities ended higher on Thursday. The Shanghai Composite Index added 0.3% to 3,236, with the CSI 300 up 0.1% to 3,800.4.

Hong Kong’s Hang Seng Index also added 0.3% to close at 19,286.1.



In India, the BSE SENSEX gained 0.3%, closing at 76,724.1.

European markets ended Thursday on a positive note. In the U.K., the FTSE 100 rose 1.1%, closing at 8,391.9, Germany’s DAX climbed 0.4% to 20,655.4, and Fra

Markets: APAC indices trade lower; China data in focus

U.S. stock futures moved slightly lower on Thursday night (Friday AEDT) following a mixed session that saw the Dow Jones Industrial Average and the S&amp;P 500 end their three-day winning streak.

Futures tied to the Dow fell 41 points, or 0.1%, while S&amp;P 500 futures dipped 0.1%, and Nasdaq 100 futures slid 0.2%.

In after-hours trading, J.B. Hunt Transport Services plunged 9.2% after missing analysts’ expectations for its fourth-quarter earnings.

Meanwhile, Rivian Automotive gained 5.1% after finalising a US$6.6 billion loan agreement with the U.S. Department of Energy's Loan Programs Office to support the construction of its new manufacturing facility in Stanton Springs North, Georgia.

During Thursday’s regular trading session, the Dow and S&amp;P 500 lost 0.2% apiece, while the Nasdaq Composite fell 0.9%. Despite the losses, all three major indices remain on track to close the week with gains.

Investors are awaiting a series of bank earnings reports set to be released before Friday’s market open, including results from State Street, Citizens Financial, Truist Financial, and Regions Financial.



Additionally, market participants will be closely monitoring the latest data on building permits and housing star

US futures slip after Dow's three-day streak ends

Australian shares are expected to rise slightly at the open, despite U.S. equities turning lower overnight as technology stocks weighed on the market.

ASX futures climbed 11 points, or 0.1%, to 8,309 as of 8 am AEDT (9 pm GMT).



On Wall Street, major benchmarks retreated, with the Dow and S&amp;P 500 down 0.2% apiece, while the Nasdaq Composite fell 0.9%.

Leading the tech sector decline, Apple dropped 3.8%, and Tesla lost 4.3% as of 2:15 pm in New York.



Apple’s slump followed reports that it is continuing to lose smartphone market share in China to local competitors, including Vivo and Huawei.

Corporate activity was also in focus, with Bloomberg reporting that Rio Tinto and Glencore are engaged in talks to merge their businesses. A potential combination would surpass BHP to become the world's largest mining company.

Additionally, Lynas Rare Earths reported increased sales revenue following the November opening of its Kalgoorlie Facility. The company is set to provide further updates to investors later today.

On the bond markets, 10-year and 2-year rates were steady at 4.483% and 3.931%, respectively.

ASX futures tick up; Wall Street dips on tech weakness

United States retail sales posted a moderate gain in December, signalling strong consumer demand as households spent on motor vehicles and a variety of goods. The momentum reinforces the Federal Reserve's cautious stance on interest rate cuts in 2025.

The Commerce Department reported on Thursday that retail sales rose 0.4% last month, slightly under 0.6% expected, following an upwardly revised 0.8% increase in November. Year-over-year, retail sales grew 3.9%.



Strong performances were noted across various sectors, including a 0.7% rise in auto dealership sales, a 2.3% jump in furniture store receipts, and a 1.5% rebound in clothing sales.

Specialty stores also saw gains, with sales at sporting goods, hobby, musical instrument and book stores climbing 2.6%, while miscellaneous retailers, such as gift shops and florists, reported a 4.3% increase.



However, online sales edged up just 0.2%, and dining-related receipts at food services and drinking establishments declined by 0.3%.

Building material store sales dropped 2%, while higher fuel costs drove a 1.5% increase in gasoline station receipts.

US retail sales end 2024 strong; labour market robust

Major U.S. benchmark averages retreated on Thursday (Friday AEDT), with the S&amp;P 500 snapping a three-day winning streak as big tech stocks declined.

Dow Jones Industrial Average fell 68.4 points or 0.2%, to 43,153.1, the S&amp;P 500 fell 12.6 points or 0.2% to 5,937.4 and the Nasdaq Composite dropped 172.9 points or 0.9% to 19,338.3.

Technology companies closed lower, with Nvidia down 2%, Meta Platforms losing 0.9% and Apple shares sliding 4% to post their worst performance since August 5. Other tech giants followed suit, as Tesla fell 3.4%, while Alphabet lost 1.3%.

The market initially gained momentum from strong corporate earnings earlier in the session. Morgan Stanley exceeded earnings expectations, boosting its stock by 4%, while Bank of America also reported better-than-expected earnings but saw its shares fall approximately 1%.



The results follow strong performances from peers JPMorgan Chase and Goldman Sachs earlier in the week.

Among data releases, retail sales came in at 0.4%, slightly under expectations of 0.6%, driven by strong demand for motor vehicles and other goods, underscoring economic resilience and supporting the Federal Reserve's cautious stance on interest rate cuts this year.

Meanwh

US markets snap winning streak as tech drags

Bank of America reported fourth-quarter earnings that exceeded Wall Street expectations, driven by stronger-than-anticipated performance in investment banking and interest income.

The bank disclosed earnings of $0.82 per share, surpassing analysts' estimates of $0.77, and revenue of US$25.3 billion, above the expectations of $25.12 billion.



Profit more than doubled to $6.67 billion, compared to the $2.1 billion Federal Deposit Insurance Corp. (FDIC) assessment and $1.6 billion accounting charge tied to interest rate swaps recorded in the same quarter of 2023.

Revenue saw a 15% increase, supported by a 44% surge in investment banking fees, which totalled $1.65 billion, exceeding projections by approximately $180 million. This growth reflects a robust year-end for Bank of America’s investment banking division, following CEO Brian Moynihan’s recent projection of a 25% rise in fees for the quarter.

Chair and Chief Executive Officer Brian Moynihan said: “We finished 2024 with a strong fourth quarter. Every source of revenue increased, and we saw better than industry growth in deposits and loans. We also ended with strong capital and liquidity, enabling us to return $21 billion of capital to shareholders in 2024.”

In

Bank of America beats Q4 profit, revenue estimates

Oliver is an experienced finance journalist specialising in financial markets and business news. | Azzet™

Oliver Gray

Markets: ASX 200 in calm finish as banks retrace gains

Gold sits at monthly high, Trump inauguration ahead

Oil prices retest 5mth highs amid supply concerns

China's Q4 GDP grows 5.4%, surpassing expectations

Markets: APAC indices trade lower; China data in focus

US futures slip after Dow's three-day streak ends

ASX futures tick up; Wall Street dips on tech weakness

US retail sales end 2024 strong; labour market robust

US markets snap winning streak as tech drags

Bank of America beats Q4 profit, revenue estimates

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