Australian shares set for third day of gains as weaker oil boosts risk appetite

Australian shares were set to rally for a third straight session on Tuesday, as falling oil prices eased inflation concerns and record Wall Street gains boosted risk appetite, lifting miners and banks. The S&P/ASX 200 index rose 0. 5% to 8, 729. 00 by 0017 GMT. The benchmark closed 0. 1% higher on Monday. Oil prices tumbled nearly $2 overnight after increased crude exports from the Middle East and a pledge from Group of Seven nations to bolster supplies helped ease concerns about potential shortages, reducing fears of another energy-driven inflation shock. The pullback in prices weighed on energy stocks, which fell 0. 9%, with heavyweights Woodside Energy and Santos down 0. 8% and 0. 4% each. In contrast, mining and banking stocks underpinned the broader market, tracking improved global risk appetite after the Nasdaq closed at a record high overnight. Sentiment was also supported by expectations that the US Federal Reserve may keep interest rates unchanged at its upcoming meeting after last week’s softer-than-expected employment data reinforced evidence of a cooling labor market, tempering concerns that borrowing costs could remain higher for longer. Back in Sydney, miners rose 0. 8%, on track for their third consecutive session of gains, driven by higher copper prices. BHP Group gained 0. 4% while Rio Tinto was flat. Iron ore miner Rio will be reporting its third-quarter production next week. Banks also gained 0. 2%, with only NAB among the “Big Four” banks trading in the green. Gold stocks were up 0. 2%, real estate stocks and health stocks traded up 1. 6% and 0. 7%, respectively. Bucking the trend, tech stocks fell 0. 7%, on track for their worst session since September 25. Sector major WiseTech Global dropped 2. 3% and was among the benchmark’s biggest laggards. Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index rose 0. 2% to 13, 719. 93.

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