Australian equities edged higher in Wednesday’s morning session, with the benchmark ASX 200 hovering near 8,945 after a subdued performance the previous day. Sentiment improved on the back of firmer U.S. futures ahead of the Federal Reserve’s first policy decision under its new Chair, Kevin Warsh, due later today.
Domestically, the Reserve Bank of Australia left the cash rate unchanged at 4.35% on Tuesday, in line with expectations. Policymakers acknowledged the impact of three rate hikes since January but signalled that further tightening remains possible if inflation proves persistent.
Upside in the local market was restrained by official warnings that an El Niño event has developed in the Pacific and could intensify into one of the strongest in decades by late 2026.
Sector performance was mixed: gains in consumer stocks, non-energy minerals, and logistics helped to offset weakness in energy, retail, and transport. Early outperformers included Evolution Mining (up 2.9%), Mineral Resources (2.8%), Wisetech Global (2.2%), and Sonic Healthcare (1.0%). The four major banks rose between 0.3% and 1%, lending further support to the index’s modest advance.
