• ASX 200 dips 0.50%
  • Energy stocks lead, while Tech lag
  • The RBA is set to have the board meeting on Tuesday

Local shares dipped today, down by 0.50% ahead of tomorrow’s RBA board meeting.

The Melbourne Institute (MI) has this morning revealed that Australia’s inflation gauge has surged to a 14-month high.

According to the MI survey, the spike in gas prices could push headline ­inflation beyond 6%, bolstering the case for the RBA to keep raising rates.

Job advertising however, appears to be stabilising after a spike earlier this year. According to the ANZ also released this morning, job ads rose by 0.4% in May, after falling by 2% in April.

On the ASX, Energy was the best performing sector after a preliminary Eurostat data on Friday showed a 39.2% increase in energy prices in May, up further from a rise of 37.5% in April.

Global oil prices rose 2% on Friday, as traders weigh up the EU embargo on Russian oil versus the OPEC’s decision to ramp up its output to 650,000 barrels a day in July and August.

Traders believe that increased output by OPEC won’t be enough to satisfy the demand from China, as it rebounds from recent lockdowns.

“Whichever way you look at it though, both Brent and WTI prices are nearing post-Ukraine highs, stripping at the days of the initial hostilities themselves,” said Oanda senior analyst, Jeff Halley.

“A potential recovery in demand from mainland China as it has got on top of omicron provides yet more reasons to believe that physical demand will keep prices elevated,” he added.

The ASX Tech sector meanwhile was the worst performer today, tracking the 2.5% fall on Nasdaq on Friday.



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Wagering company Tabcorp (ASX:TAH) was up 5% after it announced the conditional settlement of litigation with Racing Queensland.

Tabcorp and Racing Queensland have today entered into an agreement to settle the legal proceedings, with Tabcorp paying Racing Queensland and the Queensland Government a combined total amount of $150m (ex GST).

Woodside Energy (ASX:WDS), Meridian Energy (ASX:MEZ), and Santos (ASX:STO) were some of the best performing stocks today on the back of rising oil demand.


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Magellan Financial Group (ASX:MFG) was the worst performing large cap, after reporting that its funds under management (FUM) fell from $68.6m on 29 April to $65m on 31 May.