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Australian Market Little Changed

The Australian stock market is flat on Tuesday following the negative cues overnight from Wall Street on waning optimism about a near-term interest rate cut by the Federal Reserve and also reflecting a notable drop by shares of Apple and Boeing. Gains by miners were offset by weakness in the banking and oil sectors.

The benchmark S&P/ASX 200 Index is declining 3.20 points or 0.05 percent to 6669.00, after touching a low of 6,666.50 earlier. The broader All Ordinaries Index is down 1.40 points or 0.02 percent to 6,756.00. Australian stocks pulled back sharply on Monday to suffer their biggest intraday fall in five weeks.

Among the major miners, BHP Group and Fortescue Metals are advancing almost 2 percent each, while Rio Tinto is higher by more than 1 percent after a surge in iron ore prices.

The big four banks - ANZ Banking, National Australia Bank, Westpac and Commonwealth Bank - are lower in a range of 0.2 percent to 0.7 percent.

The Australian Prudential Regulation Authority or APRA said that the big four banks will have to lift total capital by 3 percentage points for risk-weighted assets by 2024, compared to a 4 percent to 5 percent increase in an initial proposal in November.

In the oil sector, Santos is lower by 0.4 percent, Oil Search is declining 0.3 percent and Woodside Petroleum is down 0.2 percent despite a modest increase in crude oil prices.

Gold miners are mixed after gold prices edged down overnight. Newcrest Mining is lower by more than 1 percent while Evolution Mining is adding 0.7 percent.

Bega Cheese said its executive chairman Barry Irvin will extend his leave by six months as he undergoes chemotherapy and it has appointed Max Roberts as his alternate director and chairman in his absence. The dairy processor's shares are rising 0.2 percent.

In economic news, Australia will see June results for the indexes of business confidence and conditions from National Australia Bank today.

In the currency market, the Australian dollar is lower against the U.S dollar on Tuesday. The local currency was quoted at $0.6973, compared to $0.6986 on Monday.

On Wall Street, stocks closed lower on Monday, partly reflecting waning optimism about a near-term interest rate cut following last Friday's much better than expected jobs data. A notable drop by Apple also weighed on the markets after Rosenblatt Securities downgraded its rating on the tech giant's stock to Sell from Neutral. Fellow Dow component Boeing also fell after Saudi Arabia's flyadeal became the first airline to officially cancel an order for the beleaguered aerospace giant's 737 MAX aircraft.

The Dow slid 115.98 points or 0.4 percent to 26,806.14, the Nasdaq slumped 63.41 points or 0.8 percent to 8,098.38 and the S&P 500 fell 14.46 points or 0.5 percent to 2,975.95.

The major European markets showed more modest moves to the downside on Monday. While the German DAX Index dipped by 0.2 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both edged down by 0.1 percent.

Crude oil futures settled modestly higher on Monday amid rising geopolitical tensions and on hopes there will some monetary easing by the Federal Reserve this month. WTI crude for August added $0.15 or about 0.3 percent to close at $57.66 a barrel.

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