ASX 200 Turns Early Decline to End Higher

The ASX 200 rose 40 points, or 0.5%, to end at 8,850 on Tuesday, turning early losses and extending gains for a third session. Easing oil prices helped temper inflation concerns ahead of Wednesday’s September CPI release, following August’s slowdown to 4.0%, below the 4.1% forecast but still above the RBA’s 2–3% target. Investors also awaited Governor Michele Bullock’s and other senior officials’ appearances before lawmakers, after Assistant Governor Sarah Hunter said the central bank had “not quite yet” done enough to curb inflation. Meanwhile, futures linked to the Dow Jones strengthened ahead of the Fed’s two-day policy meeting, which begins later today, with a rate decision due Wednesday. While a hold is widely expected, rate-hike expectations for December have increased. Gains in copper and iron ore lifted miners, including BHP Group (3.5%), Rio Tinto (2.5%), and Mineral Resources (2.4%). Lynas Rare Earths (3.5%), Qantas Airways (3.2%), and South32 (2.6%) also advanced.

Australian shares fell 36 points, or 0.4%, to 8,774 on Tuesday morning, reversing modest gains in the prior two sessions as traders were cautious ahead of September inflation data due Wednesday. In August, CPI eased to 4.0%, below the 4.1% forecast but remaining above the RBA’s 2–3% target. RBA Assistant Gov. Hunter said the central bank had “not quite yet” done enough to bring inflation under control, reaffirming policymakers’ commitment to curbing price pressures after four rate hikes this year. In the U.S., the Fed will begin its two-day meeting later Tuesday, with markets widely expecting rates to remain unchanged while awaiting guidance on the possibility of another move before year-end. Commercial services, consumer non-durables, and healthcare led declines, outweighing gains in logistics, tech, and industrial services. The four major banks fell 0.2%–1.7%. REA Group (-3.9%), Technology One (-3.3%), Pro Medicus (-2.5%), and Wisetech Global (-1.5%) were among the notable laggards.

The ASX 200 edged up 15 points, or 0.2%, to close at 8,810 on Monday, reversing early losses as gains in tech, manufacturing, and non-energy minerals lifted sentiment. Stronger U.S. stock futures also supported the market ahead of major central bank decisions, including the Fed, and further U.S. earnings reports. Traders anticipated September inflation data due later this week, after August CPI eased to 4.0%, below the 4.1% forecast but still above the RBA’s 2–3% target. Investors largely looked past RBA Assistant Governor Hunter’s warning that further rate hikes may be needed amid persistent inflation and the risk of imported price pressures becoming entrenched. Mining stocks rose, with BHP Group up 0.9% and Fortescue gaining 0.7% as iron ore prices steadied. Energy shares strengthened, led by Santos (2.2%) and Woodside Energy (1.5%), while Sandfire Resources (4.0%) and BlueScope Steel (2.9%) also gained. PLS Group surged 8.4% on improving lithium sentiment and higher prices.