ASX edges higher ahead of CPI data

The Australian share market posted a modest gain on Tuesday, buoyed by late-session buying as investors braced for a key inflation report due Wednesday. The S&P/ASX 200 Index climbed 0.1 per cent to close at 8740.60, recovering from a session low of 8643.50. Despite early weakness, most sectors finished in positive territory, though investor caution remained high with the Consumer Price Index for the June quarter expected to shape the Reserve Bank of Australia’s upcoming interest rate decision.

Healthcare rotation as energy leads gains

Among sectors, energy outperformed thanks to a rebound in crude oil prices. Woodside Energy Group Ltd (ASX: WDS) rose 1.6 per cent following news it will take over operations of the Bass Strait gas assets from ExxonMobil Australia. In contrast, real estate lagged with Vicinity Centres (ASX: VCX) and Mirvac Group (ASX: MGR) both down. Financials were mixed, with National Australia Bank Ltd (ASX: NAB) gaining 1.2 per cent while Commonwealth Bank of Australia (ASX: CBA) fell 0.4 per cent. Market watchers noted a shift from bank stocks to healthcare, with CSL Limited (ASX: CSL) rising 0.5 per cent and ResMed Inc. (ASX: RMD)slightly weaker. Sandfire Resources Ltd (ASX: SFR) also rose on strong quarterly results, while Viva Energy Group Ltd (ASX: VEA) and Boss Energy Ltd (ASX: BOE) fell sharply on disappointing outlooks.

Global markets slip on earnings and Fed caution

Major US indices declined on Tuesday as caution ahead of the Federal Reserve’s interest rate decision and underwhelming corporate earnings dampened sentiment. The S&P 500 Index slipped 0.3 per cent, the Nasdaq 100 Index fell 0.2 per cent, and the Dow Jones Industrial Average lost 204 points. Weak performances from UnitedHealth Group Inc (NYSE: UNH), The Boeing Company (NYSE: BA), and Merck & Co Inc (NYSE: MRK) dragged indices lower. Earnings disappointments from United Parcel Service Inc (NYSE: UPS) and Whirlpool Corporation (NYSE: WHR) further pressured the market. Despite a surprise uptick in July’s consumer confidence, unresolved US-China trade negotiations and signs of moderating inflation kept investors focused on the Fed’s policy outlook.