Australian stocks make some money ahead of the central bank meeting

Australian stocks rose on Tuesday, supported by gains in local mining and gold stocks, although looming uncertainty over whether the country’s central bank will tighten monetary policy further at its meeting later in the day limited gains.

The S&P/ASX 200 Index jumped 0.24% to 7,263.2 points at 00:30 GMT. The benchmark index hit its highest level in nearly two weeks.

The Reserve Bank of Australia (RBA) is widely expected to raise interest rates by 25 basis points to 4.35%, although a Reuters poll of economists highlighted forecasts were divided.

Although the latest monthly measure of consumer prices showed inflation slowing to 5.6% in May from 6.8% in April, it was still well above the RBA’s 2% to 3% target range, suggesting more may be needed. of stress.

Financial heavyweights rose 0.1%, marking their gains for the sixth consecutive session, with the four largest banks in the country gaining between 0.1% and 0.5%.

However, rate-sensitive technology stocks fell 0.6%, with Block Inc and Xero falling 0.3% and 0.7%, respectively.

Local miners rose 1% to post a three-day gain, with mining trio BHP, Rio Tinto and Fortescue Metals jumping 0.2% to 1.0%.

Energy stocks rose 0.5%, while gold stocks jumped 1.9%.

Separately, Costa Group rose 10.8% after the horticultural business said it had received a A$1.4 billion ($935.20 million) takeover offer from US private equity firm Paine Schwartz Partners LLC for shares it does not yet own.

Shares of general insurer Suncorp fell 2.8% after an expected 12% rise in costs associated with catastrophe and natural hazard reinsurance premiums in fiscal 2024.

New Zealand’s benchmark S&P/NZX 50 rose 0.1%, to 11,925.5 points.

($1 = 1.4970 Australian dollars)