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Australian Market Modestly Higher

The Australian stock market is modestly higher on Tuesday following the positive cues overnight from Wall Street. Investors turned cautious ahead of key central bank meetings this week and as they looked ahead to the release later today of minutes of the Reserve Bank of Australia's September 1 monetary policy meeting.

At the meeting, the RBA held the country's benchmark lending rate steady at the record low of 0.25 percent, but increased the size of the Term Funding Facility.

The benchmark S&P/ASX 200 Index is adding 3.30 points or 0.06 percent to 5,902.80, after touching a high of 5,919.20 earlier. The broader All Ordinaries Index is advancing 9.90 points or 0.16 percent to 6,088.40. Australian stocks closed higher on Monday.

In the tech space, Afterpay is gaining almost 4 percent, Appen is rising more than 1 percent and WiseTech Global is higher by almost 1 percent after their U.S. peers gained overnight.

In the mining sector, BHP Group is advancing almost 1 percent and Fortescue Metals is adding 0.4 percent, while Rio Tinto is declining almost 1 percent.

Gold miners are also higher after gold prices rebounded overnight. Evolution Mining is higher by more than 1 percent and Newcrest Mining is rising almost 1 percent.

Among the big four banks, Westpac, National Australia Bank and ANZ Banking are lower in a range of 1.0 percent to 1.2 percent, while Commonwealth Bank is down 0.6 percent.

In the oil sector, Woodside Petroleum is declining 0.5 percent, Santos is lower 0.4 percent and Oil Search is down 0.2 percent after crude oil prices edged down overnight.

On the economic front, Australia also will see second-quarter numbers for house prices today.

On Wall Street, stocks closed higher on Monday, partly reflecting a rebound by technology stocks, which recovered after leading the markets lower last week. Shares of Nvidia saw considerable strength after the graphics chip maker announced a $40 billion acquisition of chip designer Arm Holdings. Oracle also posting a standout gain amid reports the business software giant has edged out rival Microsoft in negotiations for the U.S. operations of TikTok. Positive sentiment was also generated in reaction to news that AstraZeneca has resumed a late-stage clinical trial of its coronavirus vaccine.

The Dow jumped 327.69 points or 1.2 percent to 27,993.33, the Nasdaq soared 203.11 points or 1.9 percent to 11,056.65 and the S&P 500 surged up 42.57 points or 1.3 percent to 3,383.54.

The major European markets turned in a mixed performance on Monday. While the French CAC 40 Index climbed by 0.4 percent, the German DAX Index and the U.K.'s FTSE 100 Index both edged down by 0.1 percent.

Crude oil futures settled lower on Monday, extending recent losses amid rising concerns about outlook for energy demand after OPEC lowered its oil demand forecast for 2020 and 2021. WTI crude for October ended down $0.07 or about 0.2 percent at $37.26 a barrel.

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