Global Markets | Australian shares end flat on US-Iran peace talk uncertainty; Rio Tinto gains

Australian sharesended largely unchanged on Tuesday, as investors awaited clarity on U.S.-Iran peace talks, while mining majorRio Tintogained after reporting an upbeat first-quarter output.

The benchmark S&P/ASX 200 index eased ‌3.9 points ⁠to finish at ⁠8,949.40 points in yet another tepid trading session that saw it drift within a 100-point range.

Investor appetite remained subdued as a second round of peace talks in the Middle East remains uncertain, as the end of a two-week ceasefire approaches.

Reports citing an Iranian official suggested Tehran was considering attending peace talks with the United States in Pakistan, but added that no decision had ⁠been made.

Iranian ‌Foreign Minister Abbas Araqchi said that “continued violations of the ceasefire” by the U.S. are a major obstacle to continuing the diplomatic process.

Tony ⁠Sycamore, a market analyst at IG, attributed the session’s “tame declines” to “traders balancing renewed geopolitical risks against persistent hopes that diplomacy could still deliver an extended or even permanent ceasefire deal”.

Miners slipped 0.2%, with BHP losing 0.3%. Gold miners lost 0.5%.

Rio Tinto shares gained 0.8% after the miner reported higher first-quarter iron ore sales and copper production.

Energy sub-index lost 0.9% as oil prices fell on expectations of peace talks between the ‌U.S. and Iran.

Financials slid 0.1% with Commonwealth Bank of Australia and ANZ falling 0.3% and 1.7%, respectively.

Sycamore also pointed to investors “taking opportunity” to rotate into sectors that were ⁠badly bruised in the first quarter.

Tech stocks, which lost a whopping 28% in the March quarter, have advanced 15% so far in April, while real estate stocks have gained about 9% after plunging 17% in the prior three months.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index fell 0.1% to 12,932.33 points.

The island nation’s annual inflation was unchanged at 3.1% in the first quarter, above the central bank’s target range, data showed on Tuesday.