Banks assist in the recovery of Australian shares; energy and miners lag behind
The Australian share market ended its five-day loss streak on Tuesday, as gains in the banking sector outweighed losses in mining and energy stocks. Investors around the world pondered whether U.S. policy will ease beyond this week.
By 2335 GMT, the S&P/ASX 200 Index rose 0.2% to 8264.9. The benchmark index ended Monday 0.6% lower.
The Financials subindex topped the benchmark index by 0.4%. Shares of the "Big Four banks" rose between 0.2% to 0.4%.
While metal prices are falling, miners have lost 0.5%.
BHP Group Rio Tinto Fortescue all suffered losses between 0.4% to 1.1%.
Oil prices fell on weak consumer spending in China, which is the world's biggest oil importer. Investors also halted their buying before the U.S. Federal Reserve made its interest rate decision.
Woodside and Santos, two of the sector's heavyweights, both fell by 1.4%.
On Wednesday, the Federal Reserve is expected to lower rates by 25 basis point to a range of 4.25%-4.50%. Investors will be looking for guidance on future easing. Futures indicate that there will only be two rate cuts in 2025.
The domestic gold stock fell by 0.3%, with Northern Star Resources and Genesis Minerals falling 0.7% and 0,6% respectively.
The technology stocks followed their overseas counterparts higher and rose 0.2%.
Shares of Wisetech Global and NEXTDC Ltd each rose 0.5%.
Karoon Energy, an Australian oil and natural gas producer, fell up to 7.5% on its worst day in the market since August 29. The company cut its production forecast for its Bauna Project in Brazil because of operational disruptions.
Over the Tasman sea, New Zealand's benchmark S&P/NZX50 index rose by 0.1% to 12811.6.
(source: Reuters)
