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Australian shares climb on likelihood of ECB, Fed rate cuts; NZ up

Published 23/07/2019, 04:34 pm
© Reuters.  Australian shares climb on likelihood of ECB, Fed rate cuts; NZ up
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* Energy stocks rise 1.4%, third straight session of gains

* 3 BHP investors push for external candidate for CEO - Reuters

* NZ benchmark up for 5th straight session (Updates to close)

By Niyati Shetty

July 23 (Reuters) - Australian shares rose on Tuesday as markets anticipate apex central banks in the European Union and the United States will lower interest rates, while rising oil prices propped up energy firms.

The S&P/ASX 200 index .AXJO finished up 0.5%, or 33.4 points, at 6,724.60. The benchmark was marginally down on Monday.

Investors are looking to policy decisions from global central banks, with the European Central Bank seen cutting key rates by 10 basis points on Thursday and the U.S. Federal Reserve expected to follow with a 25 basis trim a few days later. MKTS/GLOB

The market is waiting to hear from the ECB as they will be a leading indicator about what the Fed will do, said Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities.

Humming along to the dovish tune, a top Reserve Bank of Australia official said on Tuesday that the central bank was ready to cut rates again "if needed". However, he added that a move to quantitative easing is highly unlikely. .AXFJ rose despite the Australian financial watchdog announcing on Tuesday its intention to prescribe stricter terms on executive pay policies of large banks. Banking Corp WBC.AX added 0.3% and National Australia Bank NAB.AX gained 1.1%.

As oil prices edged higher on Tuesday amid lingering concerns about possible supply disruptions in the Middle East, the energy index .AXEJ gained 1.4%. O/R

Woodside Petroleum WPL.AX advanced 0.9% and Oil Search rose 2.5%.

Global miner BHP Group BHP.AX closed up 0.6% as at least three Australian institutional investors are pushing for the firm to consider external candidates to replace Andrew Mackenzie as new CEO, Reuters sources said. Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX were down 0.4% and 1.4%, respectively, on falling iron ore prices. IRONORE/

New Zealand's benchmark S&P/NZX 50 index .NZ50 hit a record closing high, rising 0.39%, or 42.56 points, to 10,867.25.

a2 Milk Company ATM.NZ added 1.9% and Auckland International Airport was up 0.3%.

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