Australian Stocks Edge Higher as Oil Prices Fall Ahead of RBA Decision

Australian equities rose 14 points, or 0.2%, to 8,870 in early Tuesday trading, recovering from prior losses as stronger U.S. stock futures lifted sentiment. Traders digested Apple’s earnings while awaiting the U.S. midterm elections, with a sharp drop in oil prices following renewed hopes for U.S.-Iran diplomatic talks providing further support. However, gains were capped by caution ahead of the Reserve Bank’s interest rate decision later today, as markets widely expect a fifth rate hike this year to curb persistent price pressures. Meanwhile, Australian home prices fell in October, extending recent drops amid affordability constraints. Industrials, transport, and non-energy minerals led gains, offsetting losses in energy minerals, tech, and healthcare. Qantas Airways surged 6.3% on lower fuel cost expectations, while gold miners Northern Star Resources and Evolution Mining each climbed 2.6%. Among the big four banks, Commonwealth Bank gained 1.2%, while the other three were subdued.