ASX cautious ahead of inflation data to be released on Wednesday
The benchmark ASX200 eked out a small 6.9 or 0.08 per cent gain to 8,704.6 after falling by as much as 0.6 per cent on the open.
The broader All Ordinaries also finished in the green up 3.20 points or 0.04 per cent to 8,966.70.
Australia's dollar firmed marginally up 0.06 per cent to buy 65.25 US cents.
Markets pared back early losses during Tuesday's trading. Picture NewsWire/ Gaye Gerard.
On an overall quiet day of trading, seven of the 11 sectors finished in the green, led by energy, industrials and healthcare stocks.
Woodside Energy gained 1.57 per cent to $26.60 and Santos jumped 2.06 per cent to $7.91 on the back of rising oil prices.
Healthcare giant CSL gained 0.52 per cent to $272, Pro Medicus gained 0.86 per cent to $323.21 and Fisher Paykel Healthcare jumped 1.44 per cent to $33.78.
It was a mixed day for the market heavyweight big four banks.
Commonwealth Bank shares slipped 0.35 per cent to $174.29 while Westpac fell 0.06 per cent to $33.19.
Offsetting the falls were gains from National Australia Bank which closed 1.17 per cent higher to $38.20 and ANZ which eked out a 0.03 per cent gain to $30.32.
The initial excitement in the markets on the back of a US-EU trade deal over the weekend quickly died down as the White House announced a possible bounce in the tariff rate.
Under the new plan the 'Rest of World', including Australia, could now face tariffs of 15 to 20 per cent, up from the 10 per cent initial base rate.
Capital.com senior financial market analyst Kyle Rodda said market excitement on the back of trade talks between the US and the EU was short lived.
'Wall Street failed to hold onto the post US-EU trade deal buzz but that's only because of the mountain of event risk that the markets confront in the coming days,' he said.
'The August 1 trade deadline loomed as potentially the biggest story of the week'.
Seven of the 11 sectors finished higher on a quiet day of trading. Picture: NewsWire / Max Mason-Hubers
But Mr Rodda pointed out that with deals worked out between the US and the EU, Japan and potentially China means markets attention will shift to macroeconomic figures and corporate earnings.
Australia's key macroeconomic data comes out on Wednesday with the release of the quarterly CPI figures.
Economists say a quarterly trimmed mean inflation rate between 2.6 and 2.7 per cent over the year, would fall in the RBA's target band of 2 to 3 per cent and open the door for further interest rate relief.
In company news, shares in jeweller Michael Hill jumped 2.47 per cent to $0.42 on the bell after the business announced founder Sir Michael Hill died at age 86 earlier on Tuesday.
'To every endeavour he pursued, Michael brought a deep sense of purpose, an enduring curiosity, open-mindedness and creativity that challenged all of us to embrace ever more lofty goals and be unconstrained in our thinking – a legacy that will continue to inspire us,' Michael Hill chairman Rob Fyfe said in a statement to the ASX.
Boss Energy continued its slump following the announcement of its result on Monday, dropping another 5.51 per cent to $1.80.
The stock fell more than 40 per cent after warning the market it is unlikely to meet its production targets at its Honeymoon project in South Australia on the back of costs and concerns about the uranium quality.
Shares in wagering company Tabcorp finished 1.31 per cent higher to $0.78 after Aware Super told the market it exited its stake on July 24 on the back of strong gains made earlier this year.
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