ASX 200 Adds 0.6%, RBA Flags Earlier Rate Hikes

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ASX 200 Adds 0.6%, RBA Flags Earlier Rate Hikes

By Oliver Gray - The S&P/ASX 200 gained 41.80 points or 0.56% to 7,565.20 during Tuesday’s deals as firm commodity prices buoyed investor sentiment, while Reserve Bank of Australia policymakers noted that an earlier than expected rate hike is likely amid rising inflation and a tightening labour market.

Among stocks, Energy lifted 1.3% collectively amid strong crude Oil prices. Woodside Petroleum Ltd (ASX: WPL ) added 1.6%, Santos Ltd (ASX: STO ) lifted 1.6% and Beach Energy Ltd (ASX: BPT ) added 4.1%.

Materials finished 1% higher as Rio Tinto Ltd (ASX: RIO ) gained 0.9%, BHP Billiton Ltd (ASX: BHP ) added 1.3% and Fortescue Metals Group Ltd (ASX: FMG ) lifted 0.6%.

Financials gained 0.9% as Macquarie Group Ltd (ASX: MQG ) added 0.9%, Australia and New Zealand Banking Group Ltd (ASX: ANZ ) lifted 1.2%, National Australia Bank Ltd (ASX: NAB ) gained 1.2% and Commonwealth Bank Of Australia (ASX: CBA ) added 0.5%.

In policy news, minutes from the latest RBA meeting released today showed that policymakers brought forward the timing of interest rate rises amid quicker inflation and a pickup in wages growth.

On the bond markets, Australia 10-Year yields were at fresh 7-year highs of 3.062% while United States 10-Year rates were at 40-month highs of 2.847%.

In New Zealand, the NZX 50 lost 0.5% to 11,836.

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