FX.co ★ Australian Shares Climb Ahead of CPI Data

The S&P/ASX 200 experienced a modest climb of 0.2% early on Wednesday, moving towards reaching a new three-month high with its fourth consecutive day of gains. This positive trend has been buoyed by an upturn in gold and oil stocks amid strengthening commodity prices. Simultaneously, market participants are eagerly anticipating a pivotal inflation report, which is critical for assessing the Reserve Bank's next policy decisions. The optimism was previously fueled by robust employment data released last week, prompting a more hawkish sentiment among investors. Consequently, inflation figures now stand as the critical variable influencing whether the Reserve Bank will opt for a rate hike, with traders currently estimating a 60% likelihood of a quarter-point increase at the upcoming meeting. In terms of sector performance, energy companies have surged by 1.4%, marking their highest level since September. Notably, Woodside Energy's shares rose by 1.8%, following a quarterly revenue report of $3.04 billion, surpassing market expectations. Gold stocks gained 1%, driven by bullion prices reaching new heights, while leading mining firms enjoyed a 1.3% rise for the second day in a row. Within this category, major players such as BHP, Rio Tinto, and Fortescue saw increases ranging from 0.4% to 1.5%.