Share market advances ahead of March quarter CPI

Australian shares advanced on Tuesday as investors awaited fresh inflation data for clues on whether the Reserve Bank could deliver rate cuts this year.

The benchmark S&P/ASX200 index added 0.5 per cent, or 34.3 points, to 7683.5 points, while the broader All Ordinaries rose a similar amount to 7937.9.

Of the 11 industry sectors, all finished in the green bar energy, materials and industrials.

Ahead of the fresh inflation figures, EightCap market analyst Zoran Kresovic said traders would be closely watching for indications on the path of rate cuts.

“The concern for the market is because inflation is running so high locally, unemployment is very low and wages growth is substantial, we might not get interest rate cuts in Australia at all this year,” Mr Kresovic said.

“If that is the case, then obviously the market will need to reprice itself.”

According to consensus forecasts, the consumer price index is expected to accelerate to 0.8 per cent in the March quarter, up from 0.6 per cent in December.

This would take the headline inflation rate to 3.5 per cent in the year to March, down from an annual reading of 4.1 per cent recorded in December.

Traders have priced out the chance of rate cut by the RBA this year, with investors instead expecting a 25 basis point cut in early 2025.

Following a rally on the Nasdaq, tech stocks were the top performers, rising 1.7 per cent.

Wisetech jumped 2.7 per cent to $91.60 and Xero climbed 1.6 per cent to $121.57.

Material sector heavyweights were mixed. While Fortescue sank 0.8 per cent to $24.60 and Rio Tino fell 0.2 per cent to $129.57, BHP advanced 0.2 per cent to $45.50.

Elsewhere in commodities, gold miners continued their sell-off as the appeal of the safe haven asset faded due to dissipating tensions between Israel and Iran.

While still near their record highs, spot gold prices dipped 0.9 per cent to $US2305.99.

Miners for the precious metal fell with Northern Star off 3.5 per cent to $14.74, Ramelius Resources down 4.4 per cent to $1.97 and Regis Resources sliding 4.6 per cent to $2.10.

The big four banks also finished higher, up 1.1 per cent, with CBA leading the pack, gaining 1.5 per cent.

Westpac rose 0.9 per cent to $25.97 even as it flagged it would scrap the sale of its RAMS Home Loans business.

In corporate news, EML Payments added 4.4 per cent to $1.07 after Wilson Asset Management’s 6.1 per cent stake in the firm was announced.

Pallets and crates manufacturer Brambles shed 6.3 per cent to $14.67, its worst intraday loss in more than two years after its latest quarterly update showed the company was no longer on track to hit the top-range of its guidance.

LifeStyle Communities dived 13.5 per cent to $12.32, to be the worst performer on the index, after it announced a large reduction in the number of new home settlements it expected this financial year.