Australia Market edges up ahead on inflation data

Australian share market finished session marginally higher on light volume on Tuesday, 26 July 2022, on caution ahead of a key update on domestic inflation tomorrow and a likely sharp US interest rate hike. Market gains were supported by energy, resources and mining stocks on the back of higher iron ore prices and crude oil prices.

At closing bell, the benchmark S&P/ASX200 rose 17.34 points, or 0.26%, to 6,807.27. The broader All Ordinaries index added 18.84 points, or 0.27%, to 7,025.20.

The best performers of the session on the S&P/ASX 200 were Zip Co, which rose 19.9%. Meanwhile, Nanosonics added 6.6% and Whitehaven Coal was up 6.4%. The worst performers of the session were Iress, which fell 6.6% at the close. Flight Centre declined 5.6% and Resolute Mining was down 5.5%.

Shares of materials and resources gained as strong commodity prices, with BHP Group and Rio Tinto advancing 2.5% and 1.9%, respectively. Iron ore prices rose on Monday as hopes grew of a third-quarter economic rebound in top steel producer China.

Energy stocks were up, on the back of surge in crude oil prices. Crude prices rose for a second day amid increasing concerns over tightening European supply after Russia cut gas supply through a major pipeline. Woodside Energy Group rose 2.8% and Whitehaven Coal firmed 6.4%.

Technology stocks dropped on tracking losses in their Wall Street peers as investors fretted that aggressive rate hikes could tip the US economy into recession. Block Inc slipped 3.1%, while software company Iress skidded 6.4%.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.483, off from this month's highs. The Australian dollar was at $0.6965.

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