Miners lift Australian shares, investors digest Fed's minutes

July 7 (Reuters) - Australian shares were slightly higher on Thursday, boosted by a rebound in the heavyweight mining sector after sharp declines in the prior session, while investors digested the U.S. Federal Reserve's firm hawkish stance on taming inflationary pressures.

The S&P/ASX 200 index .AXJO was up 0.4% at 6,623.30, as at 0036 GMT. It ended 0.5% lower on Tuesday.

Miners .AXMM advanced nearly 2% after a massive 5.6% drop in the previous session, as weak commodity prices led to a sharp sell-off in iron ore giants: BHP Group BHP.AX , Rio Tinto RIO.AX and Fortescue Metals Group FMG.AX .

As China iron ore futures DCIOcv1 gained 1.8% on Wednesday, the Australian mining triumvirate gained between 2% and 3% on Thursday, with Rio Tinto marking its biggest intraday jump since late April.

The Fed's June meeting minutes showed officials rallied around an outsized rate hike, justifying the 0.75-percentage-point increase as near-term inflation outlook had deteriorated since their meeting in May.

The minutes however did not explicitly mention the risk of recession, and in fact Fed officials said they thought data showed U.S. was "expanding in the current quarter", even though they acknowledged the downside risks.

Back in Australia, financials .AXFJ were slightly flat at 0.1%, with all the top lenders eking out small gains.

Energy stocks .AXEJ added 0.4%, even as Brent crude slumped to a 12-week low upon fears of a global recession, with sector major like Woodside Energy WDS.AX gaining 0.9%, while Santos Ltd STO.AX slipped as much as 2%.

Gold shares .AXGD were down 1.1%, as appeal for the precious metal dampened following a strong U.S. dollar, with Newcrest Mining NCM.AX trading flat.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2% to 11,123.12.

Reporting by Archishma Iyer in Bengaluru; Editing by Rashmi Aich

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.