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Australian Shares Gain 0.4% Ahead of RBA Rate Decision

Published 06/09/2022, 11:01 am
Updated 06/09/2022, 11:08 am
© Reuters
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By Oliver Gray 

Investing.com - The S&P/ASX 200 added 28.90 points or 0.42% to 6,881.10 after the first hour of Tuesday’s trade,  as market participants prepare for a further 50 basis point rate rise by the Reserve Bank of Australia.

ASX 200 Futures were pointing 0.3% higher.

Among stocks, Energy led the gains, lifting 0.6% collectively amid higher crude oil and coal prices. Woodside Energy Ltd (ASX:WDS) added 0.4%, Santos Ltd (ASX:STO) gained 0.3% and South32 Ltd (ASX:S32) added 1.1%.

Materials gained 0.6% as Rio Tinto Ltd (ASX:RIO) fell 0.1%, BHP Group Ltd (ASX:BHP) added 0.8%, Fortescue Metals Group Ltd (ASX:FMG) gained 1% and Champion Iron Ltd (ASX:CIA) lifted 2.8%.

Utilities were down 1.1% as Mercury NZ Ltd (ASX:MCY) fell 1.6%, AGL Energy Ltd (ASX:AGL) lost 1.3% and Origin Energy Ltd (ASX:ORG) dipped 2.5%.

Meantime, CSL Ltd (ASX:CSL) added 0.3%, Bluescope Steel Ltd (ASX:BSL) fell 1.2%, and Northern Star Resources Ltd (ASX:NST) fell 0.8% as the companies traded ex-dividend.

Ahead in the session, Reserve Bank of Australia policymakers are expected to raise the cash rate by a further 50 basis points during today’s meeting, lifting rates to 2.35%, the highest levels since December 2014.

On the bond markets, Australia 10-Year rates were at 3.675% while United States 10-Year yields were at 3.214%.

In New Zealand, the NZX 50 was down 0.2% to 11,597.4.

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