Australian share market rises, RBA considered raising rates, Wall Street ends up on earnings optimism — as it happened

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The Australian share market rose on Tuesday as minutes of the Reserve Bank's October meeting reveal the board considered hiking rates. Look back on the day's business and markets news as it happened with our blog.

Wall St: Dow +0.9% S&P +1.1% Nasdaq +1.2%Brent crude: flat at $US89.66/barrelKey EventWhy is competition for home loans set to heat up once more? And how is Australia's mortgage war affecting the big banks' market share?

Lithium developer Liontown Resources entered a trading halt to raise funding for its flagship Kathleen Valley lithium project after US-based miner Albemarle abandoned a $6.6 billion buyout bid. The funding package being hammered out over the next few days is expected to include an equity raising, said a person with knowledge of the matter who was not authorised to speak publicly.

We believe the minutes today were used as a vehicle to keep markets on notice that the tightening cycle is not necessarily over given "the monthly CPI indicator suggested that progress in lowering services price inflation remained slow". Miners were also helped by an increase in iron ore futures on Monday as investor sentiment was boosted by fresh China stimulus.

As a result, the board reiterated that some further tightening may be required to bring inflation down The board was also concerned that the sustained rebound in housing prices could be a signal that the currency policy stance was not as restrictive as had been assumed and could be supporting household consumption.

And prices are expected to provide some silver lining to the lower production totals for Australian farmers, says report co-author, RaboResearch associate analyst Edward McGeoch, with dry conditions in Australia pushing local prices above those globally, to a "positive basis" for wheat and also barley. While global export demand should also be supportive of canola prices.

Winter crop production is expected to decline across all states, except Victoria, where the bank sees it rising by eight per cent from last year.The Australian sharemarket has opened higher, with tech and mining stocks leading the gains.Most sectors were higher except for the consumers.Analysis: Why global financial markets are walking a tightrope

The competition between mortgage lenders to get your business could soon be heating up again, analysts say.

 

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