Australian share market extends winning streak ahead of key US CPI data

Ahead of key US inflation data to be released on Wednesday night, the ASX finished higher for the third day in a row, buoyed by a rise in interest rate sensitive stocks.

Ahead of key US inflation data to be released on Wednesday night, the ASX finished higher for the third day in a row, buoyed by a rise in interest rate sensitive stocks. Picture: NCA Newswire/ Gaye Gerard

The Australian sharemarket extended its winning streak to a third day on Tuesday, buoyed by an increase in interest rate-sensitive stocks as traders await fresh US CPI data to be released on Wednesday night (AEDT).

The benchmark S & P/ASX200 added 0.5 per cent, or 36.3 points, to reach 7,235.3 at the closing bell. The All Ordinaries booked similar gains, reaching 7,446.4.

On the local bourse, ten of 11 industry sectors finished in the green, led by gains in tech and consumer stocks, which finished up 2.1 per cent and 1.4 per cent, respectively.

The Australian dollar was higher, buying US65.98c.

Investors are eyeing fresh CPI data to be released overnight which is expected to show prices steadied in November to 3.1 per cent. The Federal Reserve will make its final interest rate decision of the year just a day later.

All eyes are on fresh US inflation data which will be released ahead of the Fed’s final rates decision of 2023. Picture: AFP / Saul Loeb

With tech stocks the strongest performers, sector heavyweight Xero soared 3.8 per cent to $108.33. Other large-cap tech stocks also fared well with Wisetech adding 2.9 per cent to $70.00 and Altium climbing 1.3 per cent to $46.51.

Oil prices jumped higher, with Brent crude adding 0.6 per cent to $US76.48 a barrel after an oil tanker was hit with a cruise missile in the red sea off the coast of Houthi-controlled Yemen.

Despite the news, ASX-listed oil producers fell as fears grew of an oversupply. Beach Energy sank 2.6 per cent to $1.51 while Karoon lost 1.8 per cent to $1.89.

ASX listed oil stocks didn’t track the rise in global crude prices. Picture: AFP / Frederic J. Brown

On the Singapore exchange, iron ore prices rebounded past $US135 a tonne on the January contract. Locally, iron ore miners were mixed with Rio Tinto falling 0.3 per cent to $128.53 and BHP flat at $47.56. Fortescue enjoyed a stronger performing, climbing 1.6 per cent to $26.36.

In a quiet day in companies news, fertilised producer Incitec Pivot announced Mauro Neves De Moraes as its newly appointed chief executive and managing director effective January 2024. Shares rallied 1.1 per cent to $2.88.

Charter Hall Retail, the country’s largest ASX listed real estate investment trust, added 1.2 per cent to $3.52 after it announced it would divest from two shopping centres for a combined value of $225.5 million. The company will part with Southgate Square in South Australia and Rosebud Plaza in Victoria.

Originally published as Australian share market extends winning streak ahead of key US CPI data