🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Australian shares edge higher ahead of rate decision; NZ flat

Published 04/02/2020, 12:40 pm
Updated 04/02/2020, 12:42 pm
© Reuters.  Australian shares edge higher ahead of rate decision; NZ flat
AUD/USD
-
AXJO
-
BHP
-
CSL
-
CBA
-
ANZ
-
RIO
-
RIO
-
STO
-
WBC
-
WDS
-
HG
-
AXMM
-
AXEJ
-
AXHJ
-
AXFJ
-
AXIJ
-
NZ50
-
ATM
-
FSF
-
APT
-

* Afterpay hits record high

* Energy index drops to a three-month low

* Aussie c.bank rate decision due at 0330 GMT

By Shreya Mariam Job

Feb 4 (Reuters) - Australian shares inched up on Tuesday, buoyed by financials ahead of the central bank's rate decision, although persisting worries over the economic impact from the coronavirus capped gains.

The S&P/ASX 200 index .AXJO rose 0.1% or 9.50 points to 6,932.80 by 0050 GMT.

Faced with a slowing economy, the Reserve Bank of Australia reduced rates thrice last year, bringing the cash rate to a record low of 0.75%. The central bank is expected to keep the rate on hold on Tuesday, according to a Reuters poll. economists anticipate at least one rate-cut this year.

"We think if there is a move next, it will be a cut rather than a hike and we're pencilling in April as the date for that," said Steven Daghlian, market analyst at CommSec.

Meanwhile, concerns due to the coronavirus outbreak lingered as the death toll in China jumped to 414 as of Monday. fears have also spurred a rise in the chances for a rate cut at Tuesday's meeting from 10% to 20%, Daghlian said.

Financial stocks .AXFJ firmed marginally, with Australia and New Zealand Banking Group ANZ.AX rising up to 1.6%.

Gains were capped by an as much as 0.7% fall in Commonwealth Bank of Australia CBA.AX , the country's largest bank.

Shares of Westpac Banking Corp WBC.AX fell as much as 1.5%. The lender was hit with another U.S. class-action lawsuit on Monday over issues with its financial crime monitoring. stocks .AXHJ , considered defensive bets, rose near 1%. Biotherapeutics firm CSL Ltd CSL.AX rose 1.2%.

Tracking gains of its peers on Wall Street, technology stocks .AXIJ rose 0.6%, with shares of buy-now pay-later firm Afterpay APT.AX rising as much as 4.4% to a record high.

The broader gains were capped by a drop in energy stocks .AXEJ , which fell as much as 1.5% to its lowest in over three months due to weaker oil prices.

Top energy firms Woodside Petroleum WPL.AX and Santos Ltd STO.AX declined 1.2% and 0.9%, respectively.

Weaker iron ore, copper and gold prices dragged materials and mining stocks .AXMM 0.55 lower.

Heavyweight BHP Group BHP.AX shed 0.9%, while Rio Tinto (LON:RIO) Ltd RIO.AX fell 1%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 edged higher to 11,561.88.

Shares of A2 Milk Co ATM.NZ rose 1%, recovering from an over 2% fall in the previous session. Fonterra Shareholders' Fund FSF.NZ dropped more than 1%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.