ASX edges higher as tech shares rise

The news: The benchmark ASX 200 traded mostly flat on Monday, gaining 0.1% to finish at 7,076.5. The Aussie dollar lost about 0.3% against the Greenback and is buying 64.2 US cents, after a hawkish rate hold from the Federal Reserve and strong oil prices underscored the possibility of sticky inflation and the need for higher interest rates for longer.

The numbers: By sector, IT stocks lifted 1.9%, with Wisetech, Xero, NextDC and Altium all gaining more than 1.4%, while TechnologyOne shares jumped more than 4% after Bell Potter upgraded its target price for the IT services company. Communications stocks lifted 1.2%, with Telstra, REA Group, Carsales and TPG all gaining more than 1%. Materials was the poorest performing sector, losing 0.7% as a down-tick in the iron ore price dragged on BHP, Rio and Fortescue.

The context: The RBA's conference on inflation continues tomorrow and the next day. The ABS will release Australian inflation data for the year to August on Wednesday. It's a decent week for US data, with quarterly GDP data due on Thursday night, and a speech by Federal Reserve chair Jerome Powell to round out the week before the Australian session opens on Friday.