Australian Shares Snap Three-Day Losing Streak on Rate Cut Bets; GrainCorp's Net Profit Declines 75%

MT Newswires Live11-14 13:41

Australian shares edge higher after a three-day fall as Wall Street traders responded to a US inflation print that was in line with expectations.

The S&P/ASX 200 Index rose almost 0.37% or 30.6 points to close at 8,224.

In the broader market, traders responded to a U.S. inflation print that was in line with expectations by ramping up bets of a Federal Reserve rate cut next month, though the monetary policy outlook for 2025 and beyond was clouded by Trump's return to office, Reuters reported.

On the domestic front, Australia's unemployment rate was unchanged at 4.1% in October in line with analysts' expectations, data from the Australian Bureau of Statistics showed. Australian firms added 36,800 jobs in October, resulting in over 14.5 million employed people.

Australia's corporate watchdog said its focus next year will be on protecting consumers bearing the brunt of rising cost-of-living pressures by clamping down on wrongdoing across the financial sector, Reuters reported.

Analysts at ANZ Research maintained their view that the Reserve Bank of Australia (RBA) will deliver its first rate cut in February 2025 after the latest data showed that the unemployment rate stayed at 4.1% in October.

They noted that while the labor market remains resilient, employment growth's moderation and the lower-than-expected wage print may make it easier for the central bank to begin unwinding its restrictive policy.

In company news, GrainCorp's (ASX:GNC) net profit declined 75% to AU$61.8 million in the fiscal year ended Sept. 30 from AU$249.7 million a year ago. Company shares fell nearly 3% on market close.

Xero (ASX:XRO) reported earnings of NZ$0.62 per share for the six months ended Sept. 30, up from NZ$0.35 per share a year ago. Analysts polled by Visible Alpha expected NZ$0.73. The company's shares were up more than 6% at market close and earlier hit an all-time high.

Orica (ASX:ORI) reported an attributable net profit after tax of AU$524.6 million for the 12 months ended Sept. 30, up 77% from AU$295.7 million in the year-ago period. Analysts polled by Visible Alpha expected AU$522 million.

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