Iron Ore Miners Jump as the Australian Share Market Rises Despite the Hawkish RBA Minutes

Iron Ore

Markets were supported by a surge by iron ore miners, even in the face of a new warning that the RBA is still willing to raise interest rates.

Tuesday saw a rise in the Australian stock market as traders dismissed the publication of recently released Reserve Bank board minutes, which indicated the bank was willing to raise interest rates once again.

The S&P/ASX200 rose 0.3%, or 19.8 points, to close at 7,078.2, while the All Ordinaries gained the same amount to close at 7,289.3.

Seven out of eleven industry sectors in the benchmark ended the day lower than when they started, with losses in utilities stocks plunging 1.8%. The US66c was worth one Australian dollar.

The index’s top performances were mining stocks as word spread of Beijing’s latest stimulus package.

Heavyweights in the sector BHP increased 1.4% to $47.40, Rio Tinto increased 1.9% to $127.37, and Fortescue increased 0.7% to $25.47.

During afternoon trade on the Singapore platform, iron ore futures increased 1.3% to $US132.85 per tonne for the December contract.

After oil markets continued their gains due to investor concerns over production curbs by OPEC+, energy equities also closed the day higher. Nexgen Energy increased by 0.9% to $10.09, while Woodside Energy added 0.4% to $31.91.

The Reserve Bank of Australia (RBA) has hinted that it may raise interest rates again if inflation continues, according to newly released minutes from its Melbourne Cup Day meeting.

The minutes stated that “Members agreed that how the incoming data alter the economic outlook and the evolving assessment of risks would determine whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame.”

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