Australian Stocks Rose Modestly to Start the Week

Australian shares added 23 points, or 0.3%, to 9,083 in early trading on Monday, reversing losses from the prior session as gains in materials, consumer services and healthcare lifted sentiment. A positive lead from Wall Street Friday also supported risk appetite, with investors looking ahead to Fed Chair Warsh’s remarks at the Jackson Hole symposium later this week amid elevated oil prices and multi-decade highs in global bond yields. However, gains were limited by caution ahead of Australia’s July inflation report, due Wednesday, after headline inflation eased to 3.8% in June from 4.0% but remained above the Reserve Bank of Australia’s 2%–3% target range. Governor Michele Bullock has recently stressed that underlying inflation remains too high and warned that further rate increases cannot be ruled out, amid volatility linked to the Middle East conflict. Among notable gainers were PLS Group (2.2%), Fortescue (2.1%), Aristocrat Leisure (1.7%) and South32 (1.6%).





