Australian shares higher despite hawkish RBA minutes

The local share market has closed modestly higher for a second day on renewed optimism about the state of the global economy, while shrugging off a signal that domestic interest rates might soon rise yet again.

The benchmark S&P/ASX200 index on Tuesday finished 19.8 points higher, or 0.28 per cent, at 7078.2, while the broader All Ordinaries gained 20.6 points, or 0.28 per cent, to 7,289.3.

Hawkish minutes from the Reserve Bank's November 7 meeting did little to derail the day's gains, although the Australian dollar hit a four-month high after the readout was released.

The minutes indicated board members were committed to avoiding a growing mindset among businesses that any cost increases could be passed onto consumers, which could lead to a costly inflation spiral.

City Index market analyst Matt Simpson said the minutes read like the RBA was still set on another rate hike but would try to avoid one if possible.

With no RBA meeting in January, a hot consumer price index report next week could seal another 25 basis point "Christmas present to the masses", Mr Simpson wrote.

The ASX's 11 sectors finished mixed on Tuesday, with four gaining ground, seven losing it and technology basically unchanged.

Mining was the biggest mover with a 1.4 per cent gain, with Rio Tinto adding 1.9 per cent to $127.37, BHP up 1.4 per cent to $47.40 and Fortescue climbing 0.7 per cent to $25.47 as Andrew Forrest's company announced it was moving forward on three new green hydrogen deals in the United States and Australia.

Fortescue was the latest ASX company to receive a "first strike" on its executive pay packet, with 52 per cent of shareholders voting against its renumeration report after a raft of senior management changes over the past two years.  

Northern Star added 3.5 per cent to $11.86 as the goldminer announced its drilling program had identified potential long-term growth opportunities across all three of its mining sites.

The Big Four banks all finished slightly higher, with CBA the biggest mover with a 0.5 per cent rise to $103.70. 

Westpac added 0.3 per cent to $21.29, ANZ gained 0.2 per cent to $24.29 and NAB finished up 0.1 per cent to $27.95.

Origin Energy dropped 2.9 per cent to a six-month low of $8.28, as traders judged the utility's $16 billion acquisition by a Brookfield-led private equity consortium would be successfully blocked by major stakeholder AustralianSuper. 

Shareholders will approve or reject the consortium's $9.43-per-share offer on Thursday.

SG Fleet Group plunged 11.7 per cent to a four-month low of $2.27 after its second-largest shareholders, Ayvens, sold down its stake in the car leasing company.

Appen was in a trading halt after announcing a $30 million capital raising at 55c a share, a 42 per cent discount to its last closing price of 95c a share. 

Appen said revenue conditions had deteriorated further than expected when the AI company raised $60 million in May, at $1.85 a share. 

It also announced another $14 million in cost-cutting measures, on top of the $46 million announced in May.

The Australian dollar was buying 65.79 US cents, from 65.50 US cents at Monday's ASX close.


* The benchmark S&P/ASX200 index on Tuesday finished 19.8 points higher at 7,078.2, a gain of 0.28 per cent.

* The broader All Ordinaries added 20.6 points, or 0.28 per cent, at 7,289.3.


One Australian dollar buys:

* 65.79 US cents, from 65.50 US cents at Monday's ASX close

* 96.97 Japanese yen, from 97.64 Japanese yen

* 59.93 Euro cents, from 59.96 Euro cents

* 52.42 British pence, from 52.47 pence

* 108.43 NZ cents, from 108.66 NZ cents.


License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store