ASX ends week with 0.41% gain after recovering from 11-month low

The news: The ASX 200 consolidated its recovery on Friday, gaining 0.41% to 6,954.20 after notching an 11-month low mid-week. The All Ordinaries index closed 0.47% higher and the Australian dollar is buying 63 US cents.

The numbers: Financials and materials led the recovery. Westpac gained 1.88% to $21.40. NAB and CBA were up 1.21% and 0.76% respectively. Magellan Financial Group plunged nearly 18% after a $4 billion drop in funds under management. BHP, FMG and Rio Tinto all gained more than 1%. Energy stocks were in the red, dropping nearly 0.80%. Santos fell 0.94% to $7.35 following greenwashing allegations in a landmark case questioning the gas giant’s claims it will become carbon neutral by pumping emissions underground. Ampol fell 0.91% and Woodside was down 0.35%. The remainder of the market remained relatively flat.

The context: The RBA’s October financial stability update revealed the proportion of Australian mortgage holders who are sinking at least a third of their reported income into monthly repayments has grown sharply. Borrowers are generally holding up well in the face of high interest rates and cost of living pressures yet there were cracks starting to appear, with a growing number of households in the early phases of financial stress. Crude oil prices extended their slide overnight as worries about demand outweighed the decision by OPEC-plus to maintain production cuts. US jobs data will be released on Friday night setting the scene for Monday trading.