Energy stocks help ASX edge 0.3% higher
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The news: The Australian sharemarket edged higher on Monday, helped by a rally in energy stocks after rising conflict in the Red Sea fuelled a jump in oil prices. The benchmark ASX 200 gained 0.30% to 7,578.40, within striking distance of its 7,6328.9 record and securing its sixth straight day of gains.
The numbers: Energy stocks led the way on the ASX, jumping 1.9% on the back of rising oil prices after a drone attack on US forces in Jordan heightened fears of further disruptions to Red Sea trade routes. Brent crude futures are up around 4.4% since Thursday's close, trading at USD83.40 a barrel, while the West Texas equivalent is trading at USD78.45 a barrel.
Real estate stocks (+1.01) and financials (+0.7%) also made gains, while IT stocks fell 1.2%.
The Aussie dollar has been rangebound since last Monday and is buying 65.9 US cents.
The context: The ABS will release quarterly CPI data on Wednesday, ahead of the Reserve Bank's first rate decision of 2024 next week. Australian retail sales figures for December are due tomorrow morning.
The US Federal Reserve will set its funds rate before Australian markets open on Thursday, with all bets on a hold but analysts looking for a signal on when the Fed might start cutting. It's another big week for earnings in the US, with five of the Magnificent Seven tech stocks to report quarterly earnings from Tuesday night.
