Business Recorder
Australian shares were slightly down on Tuesday, weighed down by miners, while the minutes from the central bank’s March policy meeting added to concerns around inflation stemming from the widening conflict in the Middle East. The S&P/ASX 200 index fell 0.5% points to 8,418.60 points by 0333 GMT. The benchmark closed 0.7% lower on Monday. The benchmark has shed 7.1% for the month, set to log its weakest month since January 2022, as the conflict spread across the Middle East since US and Israeli strikes on Iran began on February 28, stoking concerns over shipping routes around the Arabian Peninsula and the Red Sea. Minutes from the Reserve Bank of Australia’s March meeting showed that all members agreed that further tightening would likely be needed, but differed on timing. The central bank noted that if oil prices held around $100 a barrel, that would lift Australia’s headline inflation to around 5% in the June quarter. Five members who voted for the hike judged that the Middle East conflict would further reduce the already constrained supply capacity of the economy, noting it was important to bring inflation to the target, the minutes showed. Miners shed as much as 1.6% and was down 14.9% for the month, on track for its worst month since November 2015. Gold stocks fell as much as 1.2%. For the month, the sub-index tumbled 26.2%, on track for its worst month since June 2013. Energy stocks rose as much as 1.2% on rising oil prices. The sub-index has gained 21.1% this month, its best monthly gain since November 2020, after tensions in the Middle East pushed oil prices to over $100 a barrel. New Zealand’s benchmark S&P/NZX 50 index inched 0.1% lower to 12,735.90. The benchmark has shed 7.1% for the month, set to log its weakest month since January 2022.
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