• The ASX closed Tuesday 0.50% higher
  • The RBA signals it could keep on raising rates
  • Earnings season continues on the ASX

Aussie shares followed Wall Street’s lead into positive territory today, closing Tuesday up by 0.50%.

Local investors seemed to brush aside minutes from the RBA’s August 2 meeting, which was released earlier today.

The RBA signalled that it could keep on raising rates in the months ahead, while reiterating these hikes will not be bound by a pre-set path.

“The Board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path,” an excerpt from the RBA minutes read.

“The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market, including the risks to the outlook.

“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to the 2 to 3 per cent target range over time,” it read.

With the current cash rate now at 1.85%, most economists believe another 50bp is on the table at the next RBA meeting on September 6.

Despite weakness in commodity prices across the board overnight, the Mining sector got a boost this morning from BHP’s (ASX:BHP) strong profit announcement, which includes a record dividend payout.

According to Stockhead’s Josh Chiat, the mining giant reported a US$1.75 a share dividend, taking full year payouts to a record US$3.25. Its US$30.9 billion net profit and US$23.8b underlying attributable profit have also blown away analysts’ forecasts.

Another large cap to report full year earnings today was property developer Goodman Group (ASX:GMG).

GMG shares rose 0.3% after reporting that its operating profit for FY22 was $1.5 billion, statutory profit was $3.4 billion, and EPS growth was 24%.

Looking ahead, on Wall Street tonight, the US industrial production and housing starts data are scheduled for release.


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Tassie salmon farming company Tassal Group (ASX:TGR) jumped 5.5% after it accepted a sweetened $5.23 per share takeover offer from Canada-based Cooke Inc, valuing Tassal at $1.7 billion.


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Recruitment platform Seek (ASX:SEK) slid 6% today despite reporting an 81% increase in net profit for the full year to $245.5 million. Seek will also pay a final dividend of 21 cents a share, fully franked.