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Australian Market Advances Ahead Of RBA Decision

(RTTNews) - The Australian stock market is advancing on Tuesday following the positive cues overnight from Wall Street on gains by tech stocks as well as upbeat economic data. Resources stocks rose on higher commodity prices.

Investors now look ahead to the Reserve Bank of Australia's monetary policy decision due later today. The RBA is widely expected to keep its benchmark lending rate at a record low of 0.25 percent.

The benchmark S&P/ASX 200 Index is rising 124.40 points or 2.10 percent to 6,050.50 and the broader All Ordinaries Index is higher by 128.00 points or 2.11 percent to 6,181.90. Australian stocks closed marginally lower on Monday.

The big four banks - ANZ Banking, Westpac, National Australia Bank and Commonwealth Bank - are higher in a range of 2.4 percent to 2.7 percent.

In the oil sector, Santos is gaining more than 4 percent, while Oil Search and Woodside Petroleum are higher by almost 2 percent each after crude oil prices advanced overnight.

Among the major miners, Fortescue Metals is rising more than 3 percent, Rio Tinto is advancing more than 2 percent and BHP Group is advancing more than 1 percent after iron ore prices gained overnight.

Among gold miners, Evolution Mining is declining almost 1 percent, while Newcrest Mining is adding 0.3 percent after gold prices edged up overnight.

In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday, The local unit was quoted at $0.7125, down from $0.7140 on Monday.

On the economic front, Australia will also release June figures for imports, exports, trade balance and retail sales today.

On Wall Street, stocks closed higher on Monday, reflecting strength in technology stocks after software giant Microsoft confirmed it is in talks to acquire Chinese-owned video-sharing app TikTok. In addition, the Institute for Supply Management released a report showing a bigger than expected acceleration in the pace of growth in U.S. manufacturing activity in the month of July.

While the Nasdaq surged up 157.52 points or 1.5 percent to 10,902.80, the Dow advanced 236.08 or 0.9 percent to 26,664.40 and the S&P 500 climbed 23.49 points or 0.7 percent to 3,294.61.

The major European markets also moved sharply higher on Monday. The German DAX Index soared by 2.7 percent, while the U.K.'s FTSE 100 Index spiked by 2.3 percent and the French CAC 40 Index jumped by 1.9 percent.

Crude oil prices rose on Monday as encouraging economic data from the U.S., the Eurozone and China helped ease concerns about energy demand. WTI crude for September delivery climbed $0.74 or about 1.8 percent to $41.01 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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