ASX 200 materials shares outperformed the other 10 market sectors last week, lifting 2.75%.
Many ASX mining shares hit new 52-week highs last week amid stronger commodity prices.
They included the ASX 200 iron ore majors, led by BHP Group Ltd (ASX: BHP), and gold shares like Evolution Mining Ltd (ASX: EVN).
While the mining sector celebrated, the broader market had a sluggish week.
The S&P/ASX 200 Index (ASX: XJO) fell each day for the first three days before rallying on Thursday and Friday.
The ASX 200 closed out the week 0.73% higher at 8,697.3 points.
However, only three sectors increased in value.
Let's review.
Interest rate decisions impact market momentum
ASX 200 shares fell after the Reserve Bank of Australia (RBA) confirmed what we all expected — a hold call on interest rates.
Worse, though, the RBA indicated a rate hike may be necessary next year.
RBA Governor Michele Bullock said:
I don't think there are interest rate cuts in the horizon for the foreseeable future.
The question is, is it just an extended hold from here or is it possibility of a rate rise?
I couldn't put a probability on those but I think they're the two things that the Board will be looking closely at coming into the new year.
The market is now pricing in a 27% chance of a rate hike at the next RBA meeting in February.
Meanwhile, the US Federal Reserve cut interest rates by 0.25% last week.
That was the third cut in four months, designed to support the weakening US economy.
US interest rates are now at their lowest level since 2022.
The Australian cash rate is 3.6% while the US interest rate range is now 3.5% to 3.75%.
What happened with ASX 200 mining shares last week?
The BHP share price rose 1.67% to close at $45.59 after resetting its 52-week high at $45.98 on Friday.
Fortescue Ltd (ASX: FMG) shares lifted 3.93% to $22.98 after cracking a new 52-week high of $23.38 during the week.
Rio Tinto Ltd (ASX: RIO) closed 3.56% higher at $143.40 after resetting its 52-week high at $143.53 on Friday.
Pure-play ASX 200 copper share, Sandfire Resources Ltd (ASX: SFR) rose 1.36% to $17.11 on Friday.
The largest ASX 200 gold mining stock, Northern Star Resources Ltd (ASX: NST), rose 3.8% to $27.33 per share.
Newmont Corporation CDI (ASX: NEM) shares ripped 8.58% to $150.06.
The Evolution Mining share price closed at $12.76, up 6.33%, after resetting its 52-week high at $12.81 on Friday.
Gold and copper producer Greatland Resources Ltd (ASX: GGP) rose 12.65% to close at a 52-week high of $9.44 per share.
Alcoa Corporation CDI (ASX: AAI) shares lifted 6.14% to finish at $70.53 after hitting a 52-week high of $70.86 on Friday.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Materials (ASX: XMJ) | 2.75% |
| Financials (ASX: XFJ) | 1.69% |
| A-REIT (ASX: XPJ) | 0.85% |
| Consumer Staples (ASX: XSJ) | (0.43%) |
| Utilities (ASX: XUJ) | (0.82%) |
| Healthcare (ASX: XHJ) | (0.97%) |
| Energy (ASX: XEJ) | (1.15%) |
| Industrials (ASX: XNJ) | (1.17%) |
| Communication (ASX: XTJ) | (1.27%) |
| Consumer Discretionary (ASX: XDJ) | (1.33%) |
| Information Technology (ASX: XIJ) | (4.69%) |
