**ASX 200 Closes Higher Despite Dour Week**

ZAGO 𝕸𝖊𝖉𝖎𝖆

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Post on Oct 26, 2024

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ASX 200 Closes Higher Despite Dour Week

The Australian share market closed higher on Friday, with the ASX 200 gaining 0.7% to finish the week at 7,342 points. This positive close comes despite a challenging week for the market, with rising inflation and interest rate concerns weighing heavily on investor sentiment.

Key Drivers Behind the Uptick

While the week overall saw a downward trend, Friday's rise can be attributed to a few key factors:

• Positive Earnings Reports: Several companies released strong earnings reports during the week, boosting confidence in the market.
• Global Market Rebound: International markets experienced a slight rebound on Friday, buoyed by positive economic data from the US.
• Softening Interest Rate Fears: While interest rates are still on the rise, some investors are taking solace in the recent indications that the pace of rate hikes could slow down in the coming months.

Sector Performance

The energy sector led the gains on Friday, with Woodside Energy and Santos both experiencing significant price increases. The materials sector also performed well, supported by higher commodity prices.

Conversely, the healthcare sector lagged behind, with CSL and Cochlear seeing declines. The financials sector also struggled, with Commonwealth Bank and Westpac experiencing moderate losses.

Looking Ahead

Despite the positive close, the ASX 200 remains under pressure from the ongoing economic uncertainties. The market will likely continue to be volatile in the coming weeks as investors grapple with the evolving economic landscape.

Key factors to watch in the coming weeks include:

• Inflation Data: Further inflation data releases will be closely monitored to gauge the trajectory of interest rates.
• Earnings Season: The ongoing earnings season will provide further insights into the health of Australian companies.
• Global Economic Outlook: Developments in the global economy will continue to influence investor sentiment.

Conclusion

The ASX 200's positive close on Friday offers a glimmer of hope amidst a challenging week. However, investors should remain cautious, as the market is likely to remain volatile in the short term. The upcoming weeks will be crucial for determining the direction of the market, with inflation, earnings, and global economic developments all playing significant roles.