Market Close 08 Jan 25: Inflation data opens door for Feb rate cut

CommSec Market Update

The ASX 200 has extended its 2025 winning streak to five days, driven by a positive market reaction to November's inflation data. While headline inflation rose slightly due to electricity and fuel costs, core inflation dropped to 3.2%, below expectations, increasing the likelihood of an interest rate cut by the RBA in February. Materials and financials sectors led gains, with miners benefiting despite falling iron ore prices, while tech stocks fell following weaker U.S. market performance. Gold miners surged on strong quarterly updates, but uranium and some individual stocks faced significant declines. Looking ahead, key data releases, including retail sales, jobs, and U.S. Federal Reserve minutes, could shape market movements and rate expectations.

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