The Australian sharemarket is posting gains on the back of positive offshore leads, China’s new stimulus package and rises in some commodities prices.
However it gave up some of the morning’s gains, going from 0.9 per cent to 0.6 per cent higher after the release of the Reserve Bank’s (RBA) minutes from its recent meeting signalled it was undecided about an interest rate cut.
Quay Equities head of trading Tristan K’Nell said the RBA’s minutes suggested a rate cut in May was a 50-50 chance, with strong jobs figures last week reducing the likelihood.
The release of inflation data in Australia on Wednesday would be an important influence on that.
“A few high profile US companies beat expectations as well overnight boosting sentiment, so combine that with crude oil and iron ore back in the winners circle it was always going to be a positive day,” Mr K’Nell said.
Rio Tinto shares were up 89 cents, or 1.6 per cent, to $55.55 after releasing its quarterly update, which showed a 12 per cent fall in iron ore shipments during the March quarter, compared with the previous three months.
BHP Billiton shares were up 65 cents, or 2.2 per cent, to $30.47 while Fortescue was down 1.2 cents to $1.878.
Among the major banks, the Commonwealth gained 50 cents to $91.83, Westpac lifted three cents to $38.82, ANZ put on 14 cents to $35.78 and National Australian Bank climbed 26 cents to $38.59.
KEY FACTS
* At 1220 AEST on Tuesday, the benchmark S&P/ASX200 index was up 39.3 points, or 0.67 per cent, at 5,872.4 points.
* The broader All Ordinaries index was up 37.1 points, or 0.64 per cent, at 5,843.9 points.
* The June share price index futures contract was up 32 points at 5,859 points, with 11,396 contracts traded.
* National turnover was 690 million securities worth $1.7 billion.
