ASX 200 closes up 0.7pc, led by energy, tech and banking stocks; RBA flags inflation spike amid Ukraine crisis

ASX closes up 0.7 per cent, led by energy, tech and banking stocks. RBA flags inflation 'spike' amid Ukraine crisis. Crown faces $1bn fine and Virtus ignores BGH on revised CapVest bid.

Markets are expected to remain volatile as traders react to the latest developments in Europe. (AAP Image/Paul Miller) NO ARCHIVING

Welcome to the Trading Day blog for Tuesday, March 1. ASX climbs 0.7 per cent, as banks advance and energy stocks rally amid high oil and gas prices from the Ukraine war. RBA tips inflation to 'spike higher' and hold rates steady.

The benchmark ASX 200 finished up 0.7 per cent at 7096.5 after rising as much as 1.6 per cent to a three-day high.

Offshore markets held up better than expected on Monday, helping to  buoy the local market, despite new sanctions on Russia.

The Dow Jones Industrial Average closed down 0.5 per cent, the S&P 500 fell 0.2 per cent while the tech-heavy Nasdaq finished up 0.4 per cent. Major European bourses ended lower as Russia and Ukraine held ceasefire talks with no signs of progress.

Brent crude topped $US100 a barrel as prices traded near the highest level since 2014, while the US Nymex crude price jumped 5.5 per cent to $US96.67 a barrel. Traders will closely watch a meeting this week of OPEC and other major oil producers led by Russia, where output plans will be discussed.

In Europe, reference Dutch TTF natural gas price spiked by almost four per cent as fears grew over Russian energy supplies, while there were sharp gains for aluminium, nickel, corn and wheat - commodities where both Russia and Ukraine are major suppliers.

Iron ore traded 4.2 per cent higher overnight to $US139.10 a tonne.

- With AFP

Originally published as ASX 200 closes up 0.7pc, led by energy, tech and banking stocks; RBA flags inflation spike amid Ukraine crisis