The Australian stock market opened slightly higher on Tuesday in volatile trading, continuing the significant gains from the previous session. This movement follows generally positive signals from Wall Street overnight. Currently, the S&P/ASX 200 index is hovering just above the 8,200 mark, with performance varying across sectors as investors seek direction prior to the Christmas holidays.
The S&P/ASX 200 Index has increased by 2.00 points, or 0.02%, to reach 8,203.60, after fluctuating between a high of 8,213.10 and a low of 8,193.50 earlier. Meanwhile, the broader All Ordinaries Index rose by 3.20 points, or 0.04%, to 8,455.90. On Monday, Australian stocks closed with notable gains.
In the mining sector, major players like BHP Group and Rio Tinto are experiencing a decline of nearly 1% each, whereas Fortescue Metals and Mineral Resources are marginally up by 0.2% each.
Oil stocks are generally on the rise, with Origin Energy and Beach Energy increasing by 0.3% to 0.4% each, and Woodside Energy gaining almost 1%. Conversely, Santos is seeing a slight dip of 0.2%.
The technology sector presents mixed results, with Block, the owner of Afterpay, declining by 1.5%, Zip falling by over 3%, and Appen down by nearly 2%. However, WiseTech Global is up by more than 1% and Xero has risen slightly by 0.1%.
Gold mining companies are predominantly trending down. Gold Road Resources, Newmont, and Evolution Mining are slightly down by 0.1% to 0.5% each, Resolute Mining has dropped by 2.5%, and Northern Star Resources is losing almost 1%.
Regarding the big four banks, Commonwealth Bank is down by 0.1%, while ANZ Banking, Westpac, and National Australia Bank have edged up by 0.1% to 0.2% each.
On the economic front, the minutes from the Reserve Bank of Australia's meeting on December 9-10, disclosed on Tuesday, indicated that the nation's GDP remains subdued, falling short of expectations. In their recent meeting, the RBA Board maintained the cash rate target at a 13-year high of 4.35%. The last interest rate change occurred in November 2023, with an increase of 25 basis points, marking the highest level since late 2011.
In the currency market, the Australian dollar is currently trading at $0.623.
On Wall Street, stocks mostly advanced throughout Monday's trading session, recovering after an unclear start. The major indices built upon the robust gains from Friday, countering Wednesday's sell-off. The Nasdaq and the S&P 500 entered solidly into positive territory, while the Dow posted a more moderate increase. The Nasdaq rose by 192.29 points, or 1.0%, to 19,764.89, the S&P 500 increased by 43.22 points, or 0.7%, to 5,974.07, and another measure of the S&P 500 advanced by 66.69 points, or 0.2%, reaching 42,906.95.
Conversely, the major European markets exhibited mixed behavior. The FTSE 100 Index in the U.K. grew by 0.2%, while the French CAC 40 Index closed marginally below unchanged, and the German DAX Index slightly decreased by 0.2%.
Crude oil prices ended lower on Monday amid worries of possible market oversupply and pressure from a stronger dollar. February futures for West Texas Intermediate Crude declined by $0.26, or 0.3%, to settle at $69.20 per barrel.