2023-03-07 07:49:29 ET
Stocks and exchange traded funds linked to the Australian stock market gained ground during Tuesday's premarket trading in the U.S after the Reserve Bank of Australia raised interest rates by 25 basis points.
The RBA moved its cash rate to 3.6%, which marked the 10th rate hike since May of 2022 which have now brought borrowing costs to their highest levels since 2012.
As a result, Australian stocks ticked higher, with the S&P/ASX 200 finishing higher by 0.5% . Some names include Genetic Technologies Limited ( NASDAQ: GENE ) +1% , Immutep Limited ( IMMP ) +4.8% , and Kazia Therapeutics Limited ( NASDAQ: KZIA ) +8.9% .
At the same time shares of BHP Group Limited ( NYSE: BHP ) slipped 0.9% .
From an ETF vantage point shares of the iShares MSCI-Australia ETF ( NYSEARCA: EWA ) and the Franklin FTSE Australia ETF ( FLAU ) remained near flat.
Year-to-date price action: EWA +5.8% , FLAU +5.3% , GENE +32.9% , IMMP -4.1% , and KZIA +34.9% , and BHP +4.3% .
Aside from the rise in Australian equities, the Aussie dollar ( FXA ) declined. The Aussie dollar fell against a basket of currencies that included the dollar, euro, pound, and yen.
In broader financial news, stock index futures pointed to a higher opening as traders positioned slightly bullishly ahead of remarks from Fed chief Jerome Powell.
For further details see:
Australian stocks & ETFs rise after RBA’s 25 basis point rate hike