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Australian Market Advances

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The Australian stock market is advancing on Tuesday following the positive cues overnight from Wall Street amid expectations of upbeat earnings results from major companies this week. Oil and bank stocks are higher, offsetting weakness in the mining sector.

The benchmark S&P/ASX 200 Index is rising 25.00 points or 0.37 percent to 6,716.20, after touching a high of 6,720.10 earlier. The broader All Ordinaries Index is up 23.30 points or 0.34 percent to 6,804.50. Australian stocks edged lower on Monday.

In the oil sector, Oil Search and Santos are rising more than 1 percent each, while Woodside Petroleum is adding 0.5 percent after crude oil prices rose more than 1 percent overnight.

The big four banks - ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac - are advancing in a range of 0.1 percent to 0.3 percent.

Meanwhile, the major miners are mostly lower. Fortescue Metals is losing more than 1 percent and Rio Tinto is declining almost 1 percent, while BHP Group is edging up 0.1 percent.

Gold miners are also weak, even as gold prices edged up overnight. Newcrest Mining is lower by more than 1 percent and Evolution Mining is down almost 1 percent.

Kogan.com said its unaudited gross profit for the second half of the year was 12 percent higher than a year ago, ahead of next month's full-year results. The online retailer's shares are gaining almost 4 percent.

 

In the currency market, the Australian dollar is flat against the U.S. dollar on Tuesday. The local currency was quoted at $0.7033, compared to $0.7034 on Monday.

On Wall Street, stocks closed higher on Monday partly reflecting optimism about upcoming earnings news, as a slew of big-name companies are due to report their quarterly results this week. Traders were also reluctant to make significant moves amid a quiet day on the U.S. economic front, looking ahead to reports on new and existing home sales, durable goods orders, and second quarter GDP in the coming days.

While the Nasdaq climbed 57.65 points or 0.7 percent to 8,204.14, the Dow edged up 17.70 points or 0.1 percent to 27,171.90 and the S&P 500 rose 8.42 points or 0.3 percent to 2,985.03.

The major European markets moved to the upside on Monday. While the U.K.'s FTSE 100 Index inched up by 0.1 percent, the German DAX Index and the French CAC 40 Index rose by 0.2 percent and 0.3 percent, respectively.

Crude oil prices moved higher on Monday, amid escalation in tensions in the Middle East. WTI crude for August settled up $0.59 or about 1.1 percent at $56.22 a barrel on the expiration day.

 

 


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