ASX edges lower to finish flat for the week

The news: The Australian sharemarket fell on Friday, with the benchmark ASX 200 closing 0.10% lower for the day to 7,498.30, and up 0.12% for the week. Oil prices spiked after the US and its allies launched air strikes on targets in Yemen, fanning fears of a broader regional conflict in the Middle East. Bitcoin ETFs began changing hands in the US, with USD4.6 billion in first-day trading volume.

The numbers: The Australian dollar whipsawed overnight and is back to buying 67.0 US cents after US inflation data came in hotter than expected, tempering bets on the size, number and timeliness of Federal Reserve rate cuts in 2024.

Most sectors finished lower on Friday with the exception of energy stocks, which jumped 0.5% as the airstrikes in Yemen boosted oil prices. West Texas crude futures are trading at USD73.49 while the Brent equivalent is fetching USD78.67. Utilities and consumer staples stocks lost 1.4% and 1.2% respectively, dragged down by AGL (-2.0%), Meridian (-3.0%), Coles (-2.4%) and Woollies (-1.5%).

The context: UK GDP figures will be released overnight, along with US producer price data, with analysts expecting slight increases at the factory gate in December. It's also a big night for earnings, with banking and investment giants JPMorgan Chase, Blackrock, Citigroup, Wells Fargo and Bank of America set to post their results for the last quarter of 2023. Closer to home, Westpac's consumer sentiment survey comes out on Tuesday, ahead of ABS unemployment figures on Thursday.