Australian shares struggle as gold stocks slump

Australian shares struggled for direction on Thursday as a slump in gold stocks capped the gains in financial stocks, while higher June employment data raised expectations of a rate hike by the country's central bank next month.

The S&P/ASX 200 index ended flat at 7,325.00 after closing 0.6 per cent higher on Wednesday.

Data showed that employment beat expectations for a second straight month in June, rising by 32,600 from May, when it had surged by a disproportionately strong 76,600.

"Higher inflation and a tight labour market are likely enough for the RBA to go for at least one more hike this year," said Kerry Craig, global market analyst at JP Morgan.

Meanwhile, National Australia Bank said in a note that it expects the RBA to hike rates to 4.6 per cent but awaits inflation data due next week before making any predictions for the Aug 1 meeting.
Gold stocks fell 1.6 per cent to log their fourth straight session of losses.

Heavyweights Northern Star Resources dropped 6.6 per cent and Newcrest Mining slid 0.4 per cent.

Financial stocks extend eight-day positive streak

Financial stocks rose 0.4 per cent to stage an eight-day winning streak. Commonwealth Bank of Australia and Westpac rose 0.6 per cent and 0.3 per cent, respectively.

Among individual stocks, BHP Group posted its highest-ever annual iron ore production, helped by a sustained ramp-up at its South Flank operations in Western Australia but flagged rising costs, sending the miner's shares down 0.1 per cent

Oil and gas explorer Santos trimmed the top end of its production forecast range for fiscal year 2023 after posting a nearly 29 per cent drop in second-quarter revenue. Its shares fell 0.1 per cent.

Flight Centre's shares marked their biggest intraday percentage gain since Feb 1 after the travel retailer raised its annual underlying operating earnings forecast, citing strong performance.