Tech helps ASX gain 0.5%, US inflation overnight

The news: Tech stocks have rallied to lead the Australian sharemarket higher on Tuesday, the benchmark ASX 200 lifting 0.5% to 7,235.30. The All Ordinaries gained 0.45%.

The numbers: ASX tech stocks gained more than 2%, with strong performances by accounting software Xero (+4.3%) and Wisetech (+2.9%). Consumer staples (+1.4%), real estate stocks (+1.0%) and health care (+0.9%) also performed well.

The Aussie dollar has rallied about half a percent against the greenback and is buying 65.9 US cents. Oil prices have continued a slow grind upwards after hitting five-month lows last Thursday, with planned OPEC+ supply cuts so far failing to quell demand uncertainty. Brent crude futures are trading at around USD76.61 a barrel, while West Texas crude futures are trading at USD71.88.

The context: US consumer price index data prints overnight and analysts are expecting a slight expansion in core inflation for November along with a similar magnitude of easing in annual headline inflation. It's a quiet day for Australian macro data tomorrow, but Orica will hold its AGM tomorrow morning, followed by Westpac and Elders on Thursday and NAB on Friday.