Australia Shares Holding Steady Ahead of Fed Meeting

   By Robb M. Stewart 
 

MELBOURNE, Australia--Australian shares were trading flat at midday Tuesday, shrugging off central bank minutes that suggested a steady-as-it-goes approach to domestic monetary policy.

William Leys, a client manager at CMC Markets, said the market is likely to remain tempered ahead of the U.S. Federal Reserve's policy meeting Wednesday, when a time frame on plans to taper economic stimulus is anticipated.

"Given there has been so much speculation over how much and when, any degree of certainty may be well received," Mr. Leys said.

At 0244 GMT, the benchmark S&P/ASX 200 was trading 3.8 points higher at 5251.8 with gains in the financial sector offsetting weaker mining and energy shares. The index climbed to a fresh five-year high Monday, spurred by the withdrawal of Lawrence Summers from the running for chairman of the U.S. Federal Reserve, leaving a more dovish Janet Yellen the frontrunner.

The Australian currency was steady against the U.S. dollar after the Reserve Bank of Australia released the minutes of its last policy meeting, when it left its key interest rate on hold at a record low. The bank said its members agreed the door should remain open to further cuts.

BHP Billiton let go of the previous day's gains, falling 0.4%, while Rio Tinto was down 0.7% and gold producer Newcrest Mining was down 2.7%.

Coal miner New Hope fell 6.2% after reporting its full-year profit had fallen by more than half.

The dividend-rich banks added to their strong run this year, with ANZ and National Australia Bank both up 1.4% and Westpac up 0.7%.

Write to Robb M. Stewart at [e-mail]

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