The Australian stock market has opened slightly lower before the imminent rise in Reserve Bank interest rates, with reduced trading in international markets overnight with Wall Street closed for a public holiday.
The ASX 200 was at 6,603.9 points at 10.24 a.m. AEST, a 0.1% drop from Monday’s close.
Energy stocks rose slightly as oil prices rose overnight, with Woodside rising 1.2 percent in the first few minutes of trading.
Investors will have their eyes set on the RBA’s decision Tuesday afternoon. Credit: Louie Douvis
The flat opening of the ASX comes after European stocks rebounded 0.8 per cent and the British FTSE rose more than 1 per cent, driven by gains by oil and gas companies as tight supply concerns overcame fears of recession. Volumes shrank as U.S. markets were closed for the July 4 holiday.
The ASX broke a three-day loss streak to start the week up 1.1 percent on Monday as investors predicted the Reserve Bank will raise the cash rate by 50 basis points up 1.35 percent at their meeting today.
The chairman of the board in the shadow of the RBA of the National University of Australia, Timo Henckel, said there was little choice for the Reserve Bank to raise rates, due to national and global factors.
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“The challenges for the global economy will not go away soon: commodity shortages, high energy prices, inflation, disruptions in global supply chains, the Ukrainian war, COVID-19 and natural disasters,” he said. dir Henckel.
Brent crude rose 1.25 percent to $ 113.02, while U.S. crude rose 1.2 percent to $ 109.76 a barrel.