ASX comes out swinging after two-day Christmas break

Welcome to your five-minute recap of the trading day.

The numbers

Bargain-hunting shoppers helped lead the Australian sharemarket to rally on the first day of trade after the Christmas break, with the local bourse on track to add almost 10 per cent this year.

The Australian sharemarket has started the session after Christmas in good spirits.Credit: Louie Douvis

The S&P/ASX 200 lifted 40.9 points, or 0.5 per cent, to 8261.8 at the close, led by gains in the consumer discretionary sector (up 1.1 per cent) as Australians flocked to stores for Boxing Day bargains. Australian Retailers Association and Roy Morgan research had shown shoppers were expected to spend $1.3 billion on Boxing Day and a further $2.4 billion during the last days of December.

The lifters

Consumer discretionary company Wesfarmers, which owns Bunnings, Kmart and Target, climbed 1.4 per cent, Aristocrat Leisure lifted 1 per cent, JB Hi-Fi was up 0.65 per cent and Harvey Norman rose 0.6 per cent.

Mercury NZ (up 3.8 per cent) was the best performing large-cap stock on the local bourse, followed by Pro Medicus (up 3 per cent) and Breville Group (up 2 per cent).

The ASX’s top 10 stocks were all traded higher on Friday.

BHP was up 0.1 per cent, CBA was up 0.7 per cent, CSL rose 0.6 per cent, Westpac was up 0.7 per cent, NAB climbed 0.5 per cent, ANZ rose 0.3 per cent Fortescue lifted by 0.65 per cent, Macquarie rose 0.8 per cent, Wesfarmers climbed 1.4 per cent and Goodman Group was up 1 per cent.

The laggards

Utilities (down 0.3 per cent) was the only sector trading in the red at the close after shares in Origin (down 0.5 per cent) and APA Group (down 0.7 per cent) slumped. WiseTech (down 1.6 per cent) recorded the sharpest losses among large-caps, followed by EBOS Group (down 1.35 per cent), ALS (down 1.2 per cent) and Whitehaven Coal (down 0.7 per cent).

The lowdown

US stocks struggled to gain traction on Thursday after a rally that sent the S&P 500 to its best Christmas Eve performance since 1974, according to data compiled by Bespoke Investment Group. With major European markets closed, volume in the US equity gauge was well below the average of the past month.

US stocks are upbeat going into the new year, but volatility could be just around the corner.Credit: Bloomberg

The S&P 500 hovered near 6043 points, and the Nasdaq edged up 0.1 per cent to 20,055 points. The Dow Jones Industrial Average was little changed. Most megacaps fell, though Apple outperformed after a bullish note from Wedbush. GameStop rallied after an X post from Keith Gill, the online persona known as Roaring Kitty.

Wall Street took the latest economic data in its stride. Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it is taking longer for out-of-work people to find a job. Initial claims, meanwhile, ticked down to 219,000 in the week to December 21.

“Eco data is a non-event until we move into the new year,” said Kenny Polcari at SlateStone Wealth. “Christmas is behind us, but the New Year is ahead of us. Volumes will remain muted.”

To Jonathan Krinsky, at BTIG, the market can continue to make upside progress into year’s end, hitting a fresh high for the S&P 500 above 6100. Looking ahead to January, he thinks volatility will re-emerge.

“If the S&P 500 does make new highs, there are going to be massive divergences in breadth and momentum, which is another red flag as we get into January,” he said.

The yield on 10-year Treasuries dropped one basis point to 4.58 per cent. The Bloomberg Dollar Spot Index rose 0.1 per cent. Bitcoin sank as traders reduced their risk exposure after a record-breaking run.

Tweet of the day

Quote of the day

“To assume that a nuclear plant can replace whatever plans members have in place now is a brave [assumption],” said the Australian Energy Council chief executive Louisa Kinnear. “There would be some coal plants that could run longer than others into the future, but there is a large proportion that really are going to struggle to get beyond that 2035 date.”

The council, which represents the nation’s biggest energy companies and coal owners, said they cannot keep their ageing fossil-fuel electricity generators running long enough for Opposition Leader Peter Dutton to build his planned fleet of nuclear reactors.

You may have missed

The release of Australian soldier Oscar Jenkins from his Russian captors could take years, as the Ukrainian ambassador to Australia warned that negotiating with Moscow to release fighters is a difficult and lengthy process.

With Bloomberg