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Australian Market Roughly Flat In Cautious Trade

The Australian stock market is quite subdued Tuesday morning with investors largely making cautious moves, tracking a weak lead from Wall Street where stocks struggled for support overnight amid concerns a swift economic recovery might stoke inflation.

Energy and mining stocks are faring well tracking higher crude and bullion prices, while consumer discretionary, technology and telecommunications shares are drifting lower.

The benchmark S&P/ASX 200, which is moving in a tight band of about 13 points, is up 4.90 points or 0.07 percent at 6,785.80.

The broader All Ordinaries Index is at 7,061.50, little changed from its previous close of 7,061.60.

Among the top movers in the Shares of Corporate Travel Management Limited are climbing up more than 9 percent and Silverlake Resources is surging up 5 percent.

AUB Group shares are rising nearly 8 percent after the company said it posted a net profit of $24 million in the first half of financial year 2020, which was up 44.5 percent over the year-ago period.

Adbri Limited shares are up 6 percent after the company reported a net profit of $93.7 million for the financial year ending December 2020, compared with $47.3 million in the previous year.

Ramelius Resources is gaining 4.8 pecent after reporting a net profit of A$81.3 million for the half year ended December 2020. That was up 297% compared to the corresponding six months in the previous year.

Austal Limited shares are plunging 16 percent. Lynas Rare Earths Limited shares are down 8.2 percent and Perenti Global is lower by about 8 percent. Zip Co and Afterpay are down more than 6 percent from their previous closing levels.

Bank of Queensland Chief George Frazis said the bank acquiring ME Bank for a consideration of $1.325 billion will give BoQ the technology, scale and diversity needed to aggressively take on the big four in home loans and small business banking areas. BoQ hopes to extract $70 million to $80 million in synergy benefits within three years, Frazis said.

In the currency market, the Aussie, which hit a fresh three-year high against the dollar, climbing to 79.29 on Monday, is currently hovering around 79.15 US cents.

On the vaccine front, the rollout is "going according to plan," according to Deputy Chief Medical Officer Michael Kidd. According to reports, the second batch of Pfizer vaccines arrived in Australia on Monday night.

The U.S. market ended weak on Monday amid concerns about the impact of higher treasury yields and on uncertainty about the near term direction following a surge in valuations. The Nasdaq plunged 2.5 percent and the S&P 500 slid 0.8 percent, but the Dow edged up 0.1 percent.

European markets closed on a weak note on Monday as investors largely stayed reluctant to pick up shares amid rising bond yields and on concerns the aggressive vaccine rollouts and fiscal stimulus might stoke inflation.

The pan European Stoxx 600 drifted down 0.44 percent. The U.K.'s FTSE 100 ended down 0.18 percent and Germany's DAX slid 0.31 percent, while France's CAC 40 and Switzerland's SMI edged down 0.11 percent and 0.07 percent, respectively.

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