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Australian Shares Flat With Positive Bias Amid Hopes of US Fed Keeping Rates Steady

Oct 12, 202318:55 GMT+11

AALA−3.85%RRDG+11.11%MIN+1.90%XJO+0.04%
Australian shares were flat with a positive bias on Thursday as minutes of the recent US Federal Reserve meeting raised market hopes that the central bank will keep rates steady.
The S&P/ASX 200 Index inched up 2.60 points to 7,091.00.
Financial markets were calmer as senior US Fed members signaled that the Federal Open Market Committee is in a position to hold rates steady and observe incoming data, said Brian Martin and Daniel Hynes, analysts at ANZ Research.
"It seems evidence of a re-acceleration in inflation would be required to get the FOMC to raise rates again. Members seem confident higher bond yields will keep monetary conditions tight, further bearing down on inflation," the analysts said.
Meanwhile, China's freeing of Australian journalist Cheng Lei after three years of detainment is a major sign of the warming of diplomatic relations between China and Australia after years of tensions, Bloomberg News reported.
In company news, Arovella Therapeutics AALA secured an exclusive global license to develop an off-the-shelf cancer tumor-targeting therapy using the monoclonal antibody SPX-101 owned by biopharmaceutical firm Sparx Group. Shares of the company closed 4% lower Thursday.
Resource Development RRDG unit Central Systems secured a AU$140 million contract from Mineral Resources MIN subsidiary CSI Mining Services for the Onslow iron project in Western Australia. Shares of Resource Development jumped 11%.