Australia Market climbs to seven-week high

Australia stock market finished session sharply higher on Tuesday, 01 November 2022,as risk sentiments underpinned after the Reserve Bank of Australia raised interest rates by 25 basis points for the second consecutive time, in line with expectations.

At closing bell, the benchmark S&P/ASX200 index was up 113.40 points, or 1.65%, to 6,976.86 The broader All Ordinaries index advanced 114.74 points, or 1.63%, to 7,169.55.

The top performing stocks in S&P/ASX200 index were IMUGENE and NICKEL INDUSTRIES, up 11.4% and 7.5% respectively. The bottom performing stocks in S&P/ASX200 index were CHORUS and BRICKWORKS, down 3.5% and 2.3% respectively.

Financials were sharp higher, with the big four banks National Australia Bank, ANZ Banking, Commonwealth Bank, and Westpac adding between 0.9 and 1.6 per cent.

Energy stocks were also higher on tracking stronger crude oil prices, with Beach energy gaining more than 1%, Origin Energy surging more than 4 percent and Woodside Energy adding almost 1 percent, while Santos was down 0.5 percent.

ECONOMIC NEWS: The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%. This is the seventh consecutive tightening move by the RBA in a bid to control inflation in the country. The RBA now expects inflation to peak around 8% later this year, up from a previous forecast of 7.75%.

CURRENCY MARKET NEWS: The Australian dollar rallied to around $0.6440 ahead of the decision, and last traded at $0.6429 following the announcement.

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