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Oil, commodities prices driving shares higher

flooded park

The S&P/ASX 200 came off the highs of the day and closed up 0.5% at 7151.40, after having been 1.1% higher in the early session. Energy stocks gained, but US equity markets futures are flat, with Nasdaq lower. The Australian dollar is slightly stronger at US73.01c against the US dollar and crude oil prices continue to climb.

On the ASX, the Materials sector was higher after commodities prices gained across the board. WTI crude oil has broken through $US115 a barrel and Brent sits at $US119.12 a barrel. Gold is trading  at $US1927.31 and Bitcoin is at $US43,370.

Flooding in eastern states of Australia is causing major disruption to business with the a2 Milk company saying in an exclusive interview with The Australian that it could take years for grazing to resume on flood-ravaged pastures.

Analysts are tipping that supply chain disruption and a halt to shipping oil and grain after Russia’s invasion of Ukraine, plus increased commodities prices and chip shortages will contribute to higher food prices and keep inflation rising.

New Zealand’s NZX 50 closed up 1% and share markets in Japan, South Korea and Singapore are higher, with China and Hong Kong mixed.

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