Australia: Mining, gold stocks support shares ahead of Federal Reserve meet
AUSTRALIAN shares were steady on Monday, with mining and gold stocks supporting the benchmark index, even as risk appetite remained weak after investors weighed expectations of an outsized rate hike from the US Federal Reserve this week.
The S&P/ASX 200 index held its ground at 6743.4 points, as of 0040 GMT.
Globally, investors remained on the sidelines ahead of the Fed policy meet, where the US central bank is likely to announce a 75-basis-point hike, while a section of the market believes that an outsized 100 bps rate will be necessary to tame soaring price pressures.
Back home, Australian miners led the gains with a 1.2 per cent jump, despite lower iron ore prices in China, with sector majors Rio Tinto, Fortescue Metals and BHP Group firming between 0.4 per cent and 0.5 per cent.
The gold sector jumped nearly 1 per cent, as bullion prices steadied amid a weaker US dollar.
Shares of Newcrest Mining and Northern Star Resources rose 2.1 per cent and 2.4 per cent, respectively.
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The financial sub-index was trading steady, with two of the “Big Four” banks rising up to 0.3 per cent.
Lake Resources turned out to be the top gainer, climbing as much as 16.7 per cent, after the Australian lithium miner said work was proceeding at its Kachi project in Argentina, days after warning of a dispute with mining partner Lilac Solutions.
Losses in the energy sub-index countered benchmark gains, with index heavyweights Woodside Energy and Santos dropping 0.8 per cent each.
Separately, Origin Energy said it would divest its entire stake in the Betaloo Basin for A$60 million (S$56.8 million), while also intending to exit its upstream exploration permits.
New Zealand’s benchmark S&P/NZX 50 index edged up 0.1 per cent to 11,586.3 points. REUTERS
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