Australian share market rebounds ahead of fresh October inflation data

The Australian share market rebounded on Tuesday as investors await fresh monthly inflation data scheduled for release on Wednesday.

The benchmark index, the S&P/ASX200 added 0.4 per cent, or 27.6 points, to reach 7015.2 at the closing bell.

The All Ords climbed a similar amount to 7223.1 points.

The Australian dollar climbed to US66.32c — its highest since August 1 — on expectations that interest rates will remain higher for longer in Australia in comparison to the US and Europe.

Seven of 11 industry sectors finished in the green, led by an increase in real estate stocks, which climbed 1.5 per cent.

Gold stocks surged on firming expectations that the US Federal Reserve Supplied Credit: Supplied

Energy stocks were the worst performers despite oil prices climbing after three straight sessions of declines.

With OPEC+ members set to mull deeper production cuts at a virtual meeting on Thursday, Brent crude added 0.1 per cent.

Gold stocks climbed after the commodity climbed to reach an intraday high of $US2018.20 an ounce as expectations that the US Federal Reserve may have finished raising rates firmed.

Northern Star Resources added 3.5 per cent to $12.14, Regis Resource leapt five per cent to $1.89 and St Barbara vaulted 8.1 per cent to 20c.

Fresh retail spending data, released by the ABS, showed turnover sank 0.2 per cent in the month of October to $35.8bn, after a 0.9 per cent increase was reported in September.

Retail spending figures showed shoppers deferred making new purchases in October as they awaited the Black Friday sales. NCA Newswire / Nicki Connolly Credit: News Corp Australia

With the Reserve Bank board set to meet for a final time this year on December 5, ANZ economists Madeline Dunk and Adelaide Timbrell said the retail figures would not add to the case for a pre-Christmas rate hike.

“The clear weakness in the retail sector highlights the ongoing squeeze on household budgets and supports the case for the RBA to keep the cash rate on hold at its December meeting,” they said in a note to clients.

“While retail sales should receive a sugar hit from Black Friday and Cyber Monday sales in November, we expect the underlying trend in the series to remain weak.

“As we move into 2024, the rise in real household incomes should support retail sales.”

Despite the prospect of rates reprieve in December, money markets imply a 68 per cent change of a rate hike to 4.6 per cent by June 2024.

In company news, takeover target Origin Energy sank 0.7 per cent to $8.47 after the power producer said a loaded LNG vessel docked at its Australia Pacific LNG facility on Curtis Island in Queensland had suffered from a power outage.

Shares in Collins Food leapt nine per cent to $11.01 after the restaurant operator posted a half year net income of $50.5m, a sharp increase from $11m last year.