Little movement on ASX on Tuesday ahead of US inflation data

The Australian market was quiet as investors waited for key US inflation data, which will provide fresh insight on where the Fed Reserve moves on rates.

The Australian share market moved little on Tuesday as investors awaited fresh US inflation data for clues on when the Federal Reserve will move to cut interest rates.

At the closing bell, seven of 11 industry sectors finished in the green, pushing the benchmark S&P/ASX200 0.1 per cent higher to 7712.5, while the broader All Ordinaries added a similar amount to 7973.

The Australian dollar was flat at US65.15c.

A hotter-than-expected CPI result could force traders to trim their bets on rate cuts by the US Federal Reserve. Images/AFP (Picture: AFP / Kent Nishimura

After almost $50bn of value was wiped from the local sharemarket on Monday, IG Australia market analyst Tony Sycamore said Tuesday’s session had been a much needed stabiliser.

“While the bears will take some comfort from the ASX200’s inability to muster a rebound of substance today, the bulls will be relieved that the sell order that hit the market yesterday appears to have disappeared for now,” Mr Sycamore said.

However, fresh US CPI figures to be released on Tuesday evening (AEDT) that are expected to show a further moderation in price growth could test equities once again, Mr Sycamore added.

“If the New Year price rises don’t fall out as expected and Core CPI comes in at 3.9 per cent year-on-year or higher, it will likely see the selling return as global equities, including the ASX200, extend their retreat” he said.

On the benchmark, interest rate sensitive tech stocks the top performers, adding 1.2 per cent.

Wisetech advanced 1.8 per cent to $97.17, Xero rose 1.2 per cent to $135.63 and NextDC lifted 0.5 per cent to $17.48.

Gold stocks continued to push higher as prices for the precious metal advanced for the ninth consecutive session, sitting just below $US2200 an ounce.

Bellevue Gold was the star performer on the benchmark, adding 10.3 per cent to $1.61, after a production update showed it was on track to meet guidance of 75,000-85,000 ounces for the six months to June.

Meanwhile, Regis Resources rallied 3.1 per cent to $1.98, Perseus Mining advanced 1.8 per cent to $2.03 and Northern Star Resources climbed 1.7 per cent to $14.08.

Iron ore miners extended their losses after futures dived 7 per cent on the Singapore Exchange. Picture: Supplied.

Elsewhere in commodities, iron ore miners continued to retreat after Singaporean futures plunged nearly 7 per cent on Monday.

Sector heavyweights BHP slipped 0.7 per cent to a nine-month low of $42.53, Rio Tinto shed 0.2 per cent to $115.35, its lowest since October, and Fortescue sank 1.2 per cent to $24.75, wiping off gains since December.

“China’s latest National People’s Congress meeting didn’t ease prospects for the property market and a weak start to the construction season is boding ill for steel demand,” ANZ senior commodity strategist Daniel Hynes said, adding that “rising inventories of iron ore did not help either”.

Bitcoin, the world’s most traded cryptocurrency, reset its record of $US72,739.48 to trade at $US72,257, while ethereum soared past $US4000 for the first time since December 2021.

The United Kingdom’s financial regulator on Monday said it would permit some bitcoin-linked securities to be listed on the London Stock Exchange from April.

In company news, lithium miner Pilbara Minerals added 4.3 per cent to $5.17 after it inked a supply agreement for spodumene concentrate with China’s Sichuan Yahua Industrial Group

IGA and Total Tools parent Metcash rose 3.2 per cent to $3.93. The retailer said wholesale sales excluding tobacco jumped 5 per cent in the 10 months to February 25, while hardware sales increased 2.4 per cent over the same period.

Alumina Limited rallied 8.1 per cent to $1.27 after it announced it had agreed to be acquired by US aluminium producer Alcoa in an all-stock buyout deal worth $2.2bn.

Announcing a planned merger, shares in QV Equities and WAM Leader were mixed. While the former added 7 per cent to 99c, the latter edged 0.4 per cent to $1.40.