Australian Market Rises

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(RTTNews.com) - The Australian stock market is rising on Tuesday, with investors shrugging off the mixed cues overnight from Wall Street and news that U.S. President Donald Trump has threatened to impose additional 10 percent tariff on $200 billion of Chinese goods. A rebound in commodity prices also lifted resources stocks.

In late-morning trades, the benchmark S&P/ASX 200 Index is adding 27.30 points or 0.45 percent to 6,131.40, off a high of 6,147.60 earlier. The broader All Ordinaries Index is up 26.00 points or 0.42 percent to 6,238.80.

Among the major miners, BHP Billiton is adding 0.6 percent and Rio Tinto is higher by 0.4 percent, while Fortescue Metals is declining 0.4 percent.

Atlas Iron has given Mineral Resources three days until Thursday to respond to the A$390 million takeover bid it has received from Gina Rinehart's Hancock Processing, which trumps Mineral Resources' proposed A$280 million offer. Atlas Iron's shares are in a trading halt.

Gold miners Evolution Mining and Newcrest Mining are advancing almost 1 percent each after gold prices edged higher.

Oil stocks are also higher after crude oil prices rebounded overnight. Woodside Petroleum is higher by almost 1 percent, Santos is adding more than 1 percent and Oil Search is rising almost 2 percent.

The big four banks are mixed. National Australia Bank is rising 0.2 percent and Commonwealth Bank is adding 0.5 percent, while ANZ Banking is down 0.3 percent and Westpac is declining 0.2 percent.

Insurance Australia Group said it will sell three of its Asian operations, with the sale expected to be completed in the 2019 financial year and result in an after-tax profit of at least A$200 million. IAG's shares are gaining more than 2 percent.

On the economic front, the Reserve Bank of Australia will on Tuesday release the minutes from its monetary policy meeting on June 5. At the meeting, the RBA left its key interest rate unchanged at a record low 1.50 percent for the 20th consecutive meeting.

Australia also will see first-quarter numbers for house prices today.

In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday. The local unit was trading at US$0.7424, down from US$0.7444 on Monday.

On Wall Street, stocks closed mixed on Monday amid lingering concerns about a global trade war after the U.S. and China announced plans to impose tariffs on billions of dollars-worth of imported goods. The Dow closed lower for the fifth consecutive session, although the tech-heavy Nasdaq managed to close just above the unchanged line.

While the Nasdaq inched up 0.65 points or less than a tenth of a percent to 7,747.02, the Dow fell 103.01 points or 0.4 percent to 24,987.47 and the S&P 500 dipped 5.79 points or 0.2 percent to 2,773.87.

The major European markets moved to the downside on Monday. While the U.K.'s FTSE 100 Index closed just below the unchanged line, the French CAC 40 Index dropped by 0.9 percent and the German DAX Index tumbled by 1.4 percent.

Crude oil futures rebounded Monday as traders took advantage of steep recent losses. July West Texas Intermediate crude added $0.79 or 1.2 percent to settle at $65.85 a barrel on the New York Mercantile Exchange.

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This article appears in: Stocks , World Markets , Politics , Oil
Referenced Symbols: FSUGY ,

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