Australian shares flat; WiseTech gains on its buyout deal for US co

Reuters
05-26
Australian shares flat; WiseTech gains on its buyout deal for US co

May 26 (Reuters) - Australian shares traded flat on Monday, as banks' losses offset the gains in mining and tech stocks, led by WiseTech Global's jump to a more than three-month high on its biggest deal to take over a U.S.-based cloud computing firm.

The S&P/ASX 200 index .AXJO was largely unchanged at 8,354.9 points by 0033 GMT. The benchmark had closed at 8,360.9 points on Friday.

Tech stocks .AXIJ rose 1.4% to their highest since February 24, buoyed by software firm WiseTech Global's WTC.AX 4.5% rise after announcing a $2 billion deal to buy out E2open ETWO.N.

Steeper copper prices pushed miners .AXMM 0.4% higher. BHP BHP.AX and Fortescue FMG.AX climbed 0.4% and 0.7%, while Rio Tinto RIO.AX was flat.

Financials .AXFJ fell 0.2%, with the "Big Four" banks shedding between 0.2% and 0.6%.

Gold stocks .AXGD advanced 1.2% to a more than one-month high as bullion soared after U.S. President Donald Trump's renewed tariff threats. GOL/

Evolution Mining EVN.AX and Northern Star Resources NST.AX added 0.8% and 2.2%, respectively.

Energy stocks .AXGD gained 0.8%, tracking a rise in oil prices after Trump extended the deadline for trade talks with the European Union, easing concerns about U.S. tariffs on the bloc that could hurt the global economy and fuel demand. O/R

Traders are awaiting the local inflation data for April later this week to reinforce expectations of further interest rate cuts from the Reserve Bank of Australia $(RBA)$ this year after last week's quarter-point trim.

Swaps now imply a 60% probability for another cut in July, while a reduction in August has been more than fully priced in. Rates are more likely to bottom at 3.1% rather than 3.35%. 0#AUDIRPR

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.3% to 12,558.25 points.

The Reserve Bank of New Zealand is widely anticipated to lower the cash rate by 25 basis points at its next meeting on Wednesday, a Reuters poll showed.

(Reporting by Sneha Kumar in Bengaluru; Editing by Sumana Nandy)

((Sneha.kumar@thomsonreuters.com))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1 

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