Australian stocks end a three-day losing streak and rise thanks to the strength of commodity stocks – October 24, 2023 at 07:56

Australian stocks end a three-day losing streak and rise thanks to the strength of commodity stocks – October 24, 2023 at 07:56

Australian shares snapped a three-day losing streak to close higher on Tuesday, reflecting strength in mining and energy companies that offset a slowdown in health and consumer stocks.

The S&P/ASX 200 index closed 0.2% higher at 6,856.9 points, after rising 0.5% earlier in the session.

The benchmark index rebounded after hitting its lowest levels in a year on Monday.

Mining companies were the biggest gainers on the benchmark index, ending the day up 1% thanks to a rebound in iron ore prices.

Shares of mining giants BHP Group, Rio Tinto and Fortescue Metals rose between 0.5% and 2.6%.

Energy stocks, which rose over the past week on concerns about oil supplies, are back on an upward trajectory as underlying prices recover some of their losses.

Shares of Santos, one of the leading oil and gas companies, rose 0.6%.

Banks were also the biggest gainers on the benchmark index, ending the day up 0.1%, with the “big four” banks trading in the green. Macquarie Asset Management Group shares rose 0.6%.

Shares of rare earth giant Lynas ended the day 12.4% higher after the Malaysian government said it would allow the company to import raw materials containing naturally occurring radioactive materials until March 2026.

Investors are now awaiting Australian September inflation data, which is likely to set the tone for the Reserve Bank of Australia’s (RBA) upcoming policy meeting.

National Australia Bank analysts expect the country’s central bank to raise interest rates if inflation in September exceeds its August forecast.

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Healthcare stocks were a major drag on the benchmark index, falling 0.3%. Pro Medicus and Ramsay Healthcare, two big players in the sector, fell 2% and 0.2%, respectively.

Consumer stocks lost 1%, with retailers Woolworths and Coles losing 1.3% and 0.9%.

New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to end the session at 10,960.6 points. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Dania Ann Topel)

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