The Australian sharemarket is poised to end 2024 on a negative note. The S&P/ASX 200 index dropped 47.1 points, or 0.6%, to 8187.9 points, as of early afternoon on New Year’s Eve. Nine of the eleven industry sectors experienced declines, with mining and IT stocks among the biggest losers.
The market’s performance reflects broader global market trends. A disappointing day on Wall Street added to the pressure. The Australian dollar remained stable at 62.26 US cents during the same period. These developments have painted a challenging picture for investors as the year comes to a close.
Market analysts attribute the declines to various factors, including subdued global economic sentiment. The U.S. market, which influences global stocks, also faced setbacks. The S&P 500 fell 0.8% in afternoon trading, with 90% of its stocks losing ground. Major tech companies like Apple and Microsoft saw declines, contributing to the overall market downturn.
The Australian market’s performance has mirrored these global trends. Mining and technology sectors have been particularly vulnerable. Investors have been cautious, navigating uncertainties in the global economy. Despite a resilient domestic economy, external factors continue to weigh heavily on market performance.
The year 2024 was tumultuous for global markets, driven by economic growth, consumer spending, and a strong jobs market. However, inflation concerns and interest rate adjustments by central banks have introduced volatility. The Reserve Bank of Australia, like other central banks, has taken a cautious approach to interest rates amid these challenges.
As the new year begins, investors remain watchful. The Australian market’s performance will continue to be influenced by global economic dynamics. Analysts expect that key sectors, such as mining and technology, will remain under scrutiny. The interplay between domestic and international factors will shape market trends in 2025.
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