Australian Market Modestly Higher

(RTTNews) - The Australian stock market is trading modestly higher on Tuesday after opening in the red, extending the gains in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,850 level to fresh all-time high, with gains in financial and energy stocks and a mixed performance in mining and technology stocks.

Expectations of a rate cut by the Reserve Bank of Australia later in the day and optimism over a renewed US-China trade truce is aiding market sentiment.

The benchmark S&P/ASX 200 Index is gaining 21.70 points or 0.25 percent to 8,866.50, after hitting a low of 8,828.80 and a fresh all-time high of 8,867.60 earlier. The broader All Ordinaries Index is up 21.00 points or 0.23 percent to 9,138.60. Australian stocks closed modestly higher on Monday.

Among the major miners, BHP Group is edging up 0.3 percent and Mineral Resources is advancing almost 1 percent, while Rio Tinto is edging down 0.4 percent. Fortescue is flat.

Oil stocks are mostly higher. Origin Energy and Santos are edging up 0.1 to 0.4 percent each, while Beach energy is advancing more than 1 percent. Woodside Energy is edging down 0.1 percent.

Among tech stocks, Zip is gaining more than 1 percent, while Xero and Appen are gaining almost 1 percent each. Afterpay owner Block is declining almost 3 percent and WiseTech Global is edging down 0.3 percent.

Gold miners are mostly lower. Northern Star resources and Gold Road Resources are losing almost 1 percent each, while Resolute Mining is declining more than 1 percent. Newmont and Evolution Mining are edging up 0.2 to 0.4 percent each.

Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are gaining almost 1 percent each, while ANZ Banking is adding almost 2 percent.

In economic news, the Reserve Bank of Australia will wrap up its monetary policy meeting this morning and then announce its decision on interest rates. The RBA is expected lower its benchmark lending rate by 25 basis points, to 3.60 percent from 3.85 percent.

In the currency market, the Aussie dollar is trading at $0.652 on Tuesday.

On Wall Street, stocks showed a lack of direction over the course of the trading session on Monday following the strong upward move seen in the previous week. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the day in negative territory. While the slid 200.52 points or 0.5 percent to 43,975.09, the Nasdaq fell 64.62 points or 0.3 percent to 21,385.40 and the S&P 500 dipped 16.00 points or 0.3 percent to 6,373.45.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index climbed 0.4 percent, the German DAX Index fell by 0.3 percent and the French CAC 40 Index slid by 0.6 percent.

Crude oil prices edged higher on Monday as Russia shrugged off the U.S. deadline to end its war with Ukraine or face sanctions. West Texas Intermediate crude for September delivery was up $0.17 or 0.27 percent at $64.05 per barrel.