A robust efficiency by the banking sector has helped the Australian share market keep constructive forward of one other key month-to-month US inflation readout in a single day.
The benchmark S&P/ASX200 index completed Tuesday up 22.5 factors, or 0.31 per cent, to 7203.3, whereas the broader All Ordinaries gained 18.6 factors, or 0.25 per cent, to 7389.2.
“It’s really a bit of pause in sentiment, isn’t it? It’s all the waiting, we’ve got key events kicking off, the US CPI (consumer price index) overnight,” mentioned City Index market analyst Matt Simpson.
“And really that can be seen as a bit of a proxy for the FOMC (Federal Reserve) meeting on Thursday morning, our time.
“It’s actually about whether or not will inflation behave, or will it power the Fed right into a tighter nook and being extra hawkish than the markets need it to be in the intervening time?”
A number of signs indicate that inflation has peaked in the US but the market is looking for some clear confirmation, Mr Simpson said.
The consensus forecast is for headline inflation to slow to 7.3 per cent in November, from 7.7 per cent in October, when the data is released at 12.30am AEDT on Wednesday.
“We’ll miss all of it, as typical,” Mr Simpson mentioned.
“Which is what makes it so boring on the day earlier than … (however) I actually suppose if we get a very spectacular end result from US tonight, then it will be an important sentiment increase for tomorrow.”
Every ASX sector except mining gained ground on Tuesday, with financials climbing 1.4 per cent amid a solid gains by banks after a trading update from Bendigo and Adelaide Bank.
Australia’s fifth-biggest retail bank announced its cash earnings were up 22 per cent to $245 million in the five months to November 30, compared to a year prior.
“To date within the first half of FY23 we’ve delivered sturdy progress in money earnings and an improved return on fairness,” said Marnie Baker, Bendigo’s chief executive officer and managing director.
The regional lender was up 6.9 per cent to an almost four-month high of $9.66.
Westpac added 1.3 per cent to $23.66, CBA gained 1.0 per cent to $106.44 and NAB climbed 2.0 per cent to $30.79.
ANZ added 2.4 per cent to $24.10 and Suncorp gained 1.7 per cent to $11.92 as the Australian Competition and Consumer Commission outlined a timeline for review of ANZ’s pending $4.9 billion purchase of Suncorp’s banking arm, with the commission’s decision not expected until June 12.
The heavyweight mining sector was moving in the other direction, however, falling 1.4 per cent even as China talked of a further reopening, with Beijing’s ambassador to the US declaring international travel to the country would become easier “within the close to future”.
BHP declined 1.5 per cent to $46.08, Fortescue Metals dropped 4.2 per cent to $20.23 and Rio Tinto fell 1.9 per cent to $114.10.
In the energy sector, Woodside edged 0.1 per cent higher to $35.14 as the oil and gas giant released a strong statement saying the Albanese government’s proposed intervention in the gas market “threatens energy provide, funding and jobs”.
CSL was down 0.4 per cent to $297.04 after the blood products giant announced its chief executive of 10 years, Paul Perreault, would retire in March. He’ll be replaced by chief operating officer Paul McKenzie.
The tech sector was the strongest performer, climbing 2.1 per cent as Xero gained 3.3 per cent and Wisetech Global added 2.0 per cent.
Tyro Payments added 14.6 per cent to $1.375 on hopes that Potentia Capital Management might return to the eftpos machine provider with a sweetened takeover offer.
Tyro’s biggest shareholder, Mike Cannon-Brookes’ Grok Ventures, said in a statement it was disappointed Tyro’s board had rebuffed Potentia’s $1.60-per-share, $875m offer.
Zip fell 10.5 per cent to 64c after the buy now, pay later company allowed some holders of its convertible bonds to convert $70 million in debt to equity early.
The Australian dollar was buying 67.62 US cents, down from 67.72 US cents at Monday’s close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Tuesday gained 22.5 points, or 0.31 per cent, to 7203.3.
* The broader All Ordinaries climbed 18.6 points, or 0.25 per cent, to 7389.2.
CURRENCY SNAPSHOT:
One Australian greenback buys:
* 67.62 US cents, from 67.70 US cents at Monday’s ASX close
* 93.04 Japanese yen, from 92.78 Japanese yen
* 64.10 Euro cents, from 64.38 Euro cents
* 55.06 British pence, from 55.39 British pence
* 105.76 NZ cents, from 105.97 NZ cents.
