The Australian sharemarket has wiped out its morning gains as oil prices started climbing again and investors awaited the Reserve Bank’s interest rate decision this afternoon.
The S&P/ASX 200 edged down 1.7 points to 8571.70 as of 2.09pm AEDT, with seven of its 11 sectors in the red. Interest rate-sensitive stocks such as retailers and tech companies were trading lower in expectations of a rate hike.
The RBA will announce its rate decision at 2.30pm AEDT, with money markets pricing in a likely rate increase of 25 basis points to 4.1 per cent. The Australian dollar was trading at US70.80¢, building on its gains overnight.
Oil rose again in the afternoon after its first decline in almost a week, as Iran stepped up attacks on energy infrastructure around the Persian Gulf. Brent advanced above $US103 a barrel, after slipping 2.8 per cent overnight, while West Texas Intermediate was around $US96.
Operations were suspended at the Shah field in the United Arab Emirates, while an Iraqi oil field and key Emirati port were also targeted by Iranian drones and missiles.
