ASX inches higher on oil-led energy rally

The news: The Australian sharemarket edged higher on Monday, led by a rally in energy stocks after oil prices rebounded amid supply cut concerns. The benchmark ASX 200 lifted 0.13% to 7,058.40, and the broader All Ordinaries gained 0.11%. The Aussie dollar is buying 65.5 US cents, its highest level since 10 August. The greenback was downbeat against most major currencies and China held its loan prime rates steady.

The numbers: Energy stocks lifted 1.3% as oil rebounded after four weeks of losses, as OPEC and its allies to consider supply cuts to bolster prices. Brent crude futures are fetching around USD81.16 per barrel and West Texas is trading at USD76.45 per barrel. Financial stocks also gained ground, lifting 0.6%, with the ASX bourse getting a 1.1% boost after announcing a partner to redesign its decades old clearance and settlement system.

The context: Reserve Bank governor Michele Bullock will take part in a panel discussion alongside ASIC chair Arthur Longo, productivity commission chair Danielle Wood and Future Fund CEO Raphael Arndt at the ASIC annual forum tomorrow at 10am AEDT. RBA monetary policy meeting minutes will follow at 11:30am. Advanced chip maker Nvidia will post quarterly earnings overnight on Tuesday, with many investors watching keenly for quantitative data on AI semiconductor demand. FOMC meeting minutes will be released on Wednesday.