Australia's share market stumbled at the finish line but closed the week higher as a rebound in recently neglected bank stocks continues.
The S&P/ASX200 is up 1.28 per cent for the week after rising 16.3 points on Friday, or 0.18 per cent, to 8908.1, while the broader All Ordinaries gained 12.8 points, or 0.14 per cent, to 9025.4.
Non-energy miners also improved despite falling in the last two sessions, snapping an eight-week losing streak underpinned by soaring oil prices, high bond yields and jitters around AI and the global data centre build-out.
Investors increasingly found refuge in financials, which have notched a more than eight per cent advance over three straight weeks of gains.
"Every time that the miners get sold off, the banks rally back, and so there's just this rotation going on," Moomoo chief market strategist Tapas Strickland said.
Australian financials have clawed back most of their August earnings season sell-off, which followed double-digit drops in the major banks' mortgage rates amid a softening housing market.
Markets will be watching closely next week as Westpac, NAB and Macquarie hand down September-quarter updates.
"That will give us a greater guide to exactly how the banks are coping with the housing market downturn," Mr Strickland told AAP.
Oil prices eased this week as reports the US was seeking talks with Iran counterbalanced fears it was preparing to re-escalate its war once the uncertainty of next week's mid-term election had passed.
Consumer discretionary stocks broke a four-week winning streak, tumbling following underwhelming sales results from Wesfarmers, JB Hi-Fi and Super Retail.
On the staples side, Coles shares plummeted 7.7 per cent on Friday on the back of its quarterly update, after the supermarket giant lost more market share to Woolworths and its liquor earnings retreated.
Conversely, shares in Endeavour — which owns BWS and Dan Murphy's and was spun out of Woolworths in 2019 — rose more than four per cent as it grew sales across bottle shops and its hotels portfolio.
Looking ahead, interest rate markets are tipping a roughly five-in-six chance the Reserve Bank will hike the official cash rate on Melbourne Cup Day, after September inflation came in higher than forecast.
"A rate hike is a red-hot favourite, taking the cash rate to 4.85 per cent – the highest level since November 2008," Betashares chief economist David Bassanese said.
"The trimmed mean has confirmed the upside inflation risks flagged by the RBA in recent months and, notwithstanding a pre-emptive hike in September, there seems little reason to wait until December before hiking rates again."
The Australian dollar is buying 70.33 US cents, down from 70.47 US cents on Thursday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 16.3 points, or 0.18 per cent, to 8908.1
* The broader All Ordinaries advanced 12.8 points, or 0.14 per cent, to 9025.4
One Australian dollar trades for:
* 70.33 US cents, from 70.47 US cents on Thursday at 5pm AEDT
* 110.85 Japanese yen, from 111.20 Japanese yen
* 62.88 euro cents, from 63.27 euro cents
* 52.52 British pence, from 52.93 pence
* 124.79 NZ cents, from 125.46 NZ cents
