the cob: hot copper

The Australian share market spent the day searching for direction with the S&P/ASX 200 Index eventually settling up 0.27% to 8,618.40 points.

Much of the action was concentrated in the resources sector with copper related stocks leading the gains as the red metal hit a record high on the LME amid fears of a global supply squeeze. Copper’s surge lifted Rio Tinto to a record $140.58, with the stock up 19% so far this year. Similarly, BHP jumped 3.6% to $44.50— its highest level since October 2024. Capstone Copper was the best performer of the day, up 8%.

However, lithium stocks were among the worst performers with Liontown Resources down 6%. Vulcan Energy tumbled 33.1% after raising $710 million to fund its Lionheart lithium and renewable energy project in Germany.

Elsewhere, Regis Healthcare fell 3.9% as it agreed to sell its aged care homes in North Queensland. Cash Converters rose 3.3% as it acquired 29 east coast franchise stores for $37 million.

Markets have raised bets for rate hikes from the RBA next year following data revealing Australian households spent more than $78 billion in October as year-end sales lured consumers. The strength in spending lifted the three-year government bond yield to 4.035%, the highest since January. That put pressure on interest rate sensitive sectors such as the REITs.

Tonight, the focus will be on US job layoffs ahead of next week's Fed decision on interest rates.