PERTH: The Australian sharemarket has righted the ship to be trading slightly firmer at noon after two sessions of steep losses, as investors await next week’s Reserve Bank rates decision.
At 12.05pm (AEST), the benchmark S & P/ASX200 was 18 points, or 0.31 per cent, higher at 5808, while the broader All Ordinaries index was up 16.8 points, or 0.29 per cent, at 5790.5.
The benchmark index had plummeted 198.6 points, or 3.3 per cent, in the past two trading days as Australian banking stocks were heavily sold off over uncertainty surrounding Tuesday’s upcoming RBA meeting.
The bourse opened today slightly softer, but has gained ground into midday.
Mining stocks were pulling the market higher at noon, despite a fall in the iron ore price overnight, on news that the world’s third-biggest producer, Vale, could trim output.
It’s the second flinch from a major iron ore miner in as many weeks, following news BHP Billiton would defer a debottlenecking project.
