Australian Market Slightly Lower

The Australian stock market is slightly lower in choppy trading on Tuesday, giving up some of the gains in the previous two sessions, with the benchmark S&P/ASX 200 staying above the 7,100 level, despite the broadly positive cues from Wall Street overnight, dragged largely by technology stocks which mirrored their peers on the tech-heavy Nasdaq. The markets also remain cautious after the new Prime Minister was sworn in on Monday.

The benchmark S&P/ASX 200 Index is losing 10.80 points or 0.15 percent to 7,138.10, after touching a high of 7,161.00 and a low of 7,114.00 earlier. The broader All Ordinaries Index is down 13.30 points or 0.18 percent to 7,385.60. Australian stocks closed slightly higher on Monday.

Among the major miners, BHP Group and Rio Tinto are gaining almost 1 percent each, while Mineral Resources is advancing 3.5 percent, Fortescue Metals is up more than 1 percent and OZ Minerals is adding more than 2 percent.

Oil stocks are mixed, with Beach energy edging down 0.3 percent, while Santos is edging up 0.5 percent. Origin Energy and Woodside Petroleum are flat.

Among tech stocks, Appen and Xero are losing more than 1 percent each, while Afterpay owner Block is slipping more than 6 percent, WiseTech Global is declining almost 3 percent and Zip is sliding almost 4 percent.

Gold miners are mixed. Newcrest Mining is losing almost 1 percent and Gold Road Resources is edging down 0.4 percent, while Northern Star Resources is edging up 0.4 percent and Evolution Mining is adding more than 1 percent. Resolute Mining is flat.

Among the big four banks, Commonwealth Bank and National Australia Bank are gaining almost 1 percent each, while Westpac and ANZ Banking are edging up 0.4 percent each.

In economic news, the manufacturing sector in Australia continued to expand in May, albeit at a slower pace, the latest survey from S&P Global showed on Tuesday with a manufacturing PMI score of 55.3. That's down from 58.8 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. This marked the twenty-fourth successive month in which conditions in the manufacturing sector strengthened, though at the slowest pace in four months. The survey also showed that the services PMI fell to 53.0 in May from 56.6 in April, while the composite PMI slipped to 52.5 from 55.9.

In the currency market, the Aussie dollar is trading at $0.708 on Tuesday.

On Wall Street, stocks showed a strong move to the upside during trading on Monday following the extreme volatility seen over the past few sessions. The major averages advanced early in the session and managed to remain firmly positive throughout the day.

The major averages held on to their strong gains going into the close. The Dow surged 618.34 points or 2 percent to 31,880.24, the Nasdaq jumped 180.66 points or 1.6 percent to 11,535.27 and the S&P 500 shot up 72.39 points or 1.9 percent to 3,973.75.

The major European markets all also moved to the upside on the day. While the U.K.'s FTSE 100 Index surged by 1.7 percent, the German DAX Index and the French CAC 40 Index shot up by 1.4 percent and 1.2 percent, respectively.

Crude oil futures pared early gains and settled flat on Monday. Oil prices climbed higher earlier in the day amid hopes of increased demand from China, while a weaker dollar also offered support. West Texas Intermediate crude oil futures for July ended at $110.29 a barrel, up a penny from Friday's close of $110.28 a barrel.

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