Australian shares recouped early losses to close little changed on Thursday, with gains in heavily weighted miners countering a drop in top oil and gas producer Woodside Energy after its CEO announced a surprise move to lead BP. The S&P/ASX 200 index fell as much as 0.4% before closing unchanged at 8,588.20 following a three-day slide. The main index was, however, on pace to end its last full week of trading in 2025 with a 1.3% decline, with sticky inflation and strong economic growth upending expectations of further interest rate cuts. Markets are now anticipating the central bank’s next move to be upwards sometime next year, instead of earlier expectations of a rate cut in the first half. “It certainly does not appear that we will have a ‘Christmas rally’,” said Craig Sidney, senior investment adviser at Shaw and Partners. “Volumes will dry up substantially from Monday, so moves can be exacerbated in either direction.” Banks ended flat, with a 0.7% advance in top lender Commonwealth Bank of Australia countering losses in the remaining “big four” banks. Energy stocks slipped to their lowest close in nearly two months, led by a 2.7% drop in Woodside Energy. Oil and gas major Woodside posted its lowest close since late October after Chief Executive Meg O’Neill departed to lead BP Plc. Under O’Neill’s leadership, Woodside merged with BHP’s petroleum arm to create a top 10 global independent oil and gas producer valued at $40 billion and doubled its oil and gas production. Miners tracked iron ore prices higher and eked out a 0.2% gain. The sector, which typically outperforms under a strong Australian dollar, is poised for further gains next year as expectations of rate hikes would see the Aussie appreciate, Sidney said. New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to 13,256.77, its lowest close since late September. Data showed the country’s economy returned to growth in the third quarter, confirming early indications of an improvement in economic momentum.