Market Wrap / feeling the pinch

The Australian sharemarket advanced this Tuesday on hopes of renewed dialogue between the US and Iran, even as tensions escalated with the start of an Iranian port blockade.

Locally the S&P/ASX200 swung higher by 0.5% to 8,970.80 points, mirroring overnight Wall Street gains. 

Oil prices pulled back below US$100 a barrel after briefly topping that level overnight, as markets priced in a potential de-escalation in the conflict. The local energy was still slightly higher pushed by some coal miners.

Tech led gains across the index following Monday’s sell-off, with heavyweight WiseTech rising 4.47% and driving a sector-wide gain of 3.6%.

However, the biggest gains came from IperionX, surging 10.6% after securing titanium prototype orders from US partners. 

In the resource space, China is reportedly easing restrictions on some BHP iron ore cargoes, sending the miner up 3.89%. 

Among the losers, Westpac says the escalating Middle East conflict has weighed on income in its markets division, shedding 2.45% ahead of its half year results where it expects to lift credit provisions.

And Qantas has flagged an $800 million blowout in fuel costs, cutting domestic flying capacity by 5% in response and sending the share price down 0.2%. 

Tonight, core PPI data is set to be released out of the States while markets continue to monitor the situation unfolding in Iran.