Australian miners lift ASX 200 ahead of key inflation figures

what happened

Australian shares are on track for a fourth straight session of gains, according to Reuters. The S&P/ASX 200 climbed 0.9% to 8,823.90 by 00:17 GMT, which would be its highest close since September 7.

Heavyweight miners jumped 1.6% as copper firmed on stronger demand from China, the country's largest consumer of the metal. Rio Tinto added 0.4% and BHP 0.7%.

Attention now turns to third-quarter consumer price data due at 00:30 GMT. Forecasts point to core inflation rising sharply by 1.0%, with the annual rate holding at 3.6%, well above the central bank's 2% to 3% target band. Swaps price nearly a 70% probability of a quarter-point rate rise on November 3, which would lift the cash rate to 4.85% and mark a fifth hike this year.

Energy stocks retreated 1.2% as oil prices fell, with Woodside Energy and Santos each losing more than 1.4%. Technology shares gained 2.5%, following a rally on Wall Street. In New Zealand, the S&P/NZX 50 was flat at 13,681.16 ahead of the Reserve Bank's cash rate decision at 01:00 GMT, where a quarter-point increase to 3.0% is widely anticipated.

why it matters

Copper-linked miners carry significant weight in the index, so firmer metal prices support the market as a whole. Expectations of further tightening from the RBA, however, weigh on rate-sensitive stocks. The inflation print will be key to gauging the outlook for monetary policy in Australia.

market impact

ASX 200: copper-linked miners support the index, energy stocks weigh on it

• ▲Copper pressure up — firmer demand from China supports prices
• ▼Australian energy stocks pressure down — falling oil prices weigh on their shares

tags

instruments