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The mining giants are largely trading in the green: Rio Tinto lifted 0.7 per cent, BHP rose 1.9 per cent, while Fortescue slid 1.1 per cent. The big four banks were a mixed bag: Commonwealth Bank slipped 0.2 per cent, NAB rose 0.5 per cent, while ANZ and Westpac were virtually flat.

Luxury reseller Cettire shed 15.8 per cent of its share price, likely following a move by Bell Potter to downgrade the stock to hold with a lower price target of $4.50.

The lowdown

The Reserve Bank board has released the minutes of its latest meeting, where members noted household consumption growth was very weak amid high inflation, interest rates and tax payments.

“Returning inflation to target remained the board’s highest priority and that it would take some time before they could have sufficient confidence that this would occur within a reasonable time frame. At the same time, members noted the importance of preserving as many of the gains in the labour market as possible,” the minutes stated.

“In light of this and their assessment of the economy, members agreed that it was appropriate to characterise the policy outlook as one in which it was difficult to either rule in or out future changes in the cash rate target.”

Judo Bank economists said it was clear rate rises could not be ruled out. “If they could, the RBA would say as much,” economists Warren Hogan and Matthew De Pasquale wrote in a note. “Calling for rate hikes is a tough view to hold. That doesn’t mean it won’t happen.”

Overnight, the S&P 500 dipped 0.2 per cent, from its all-time high. The Dow Jones dropped 0.6 per cent, from its record. The Nasdaq composite was an outlier and added 0.1 per cent.

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In the bond market, Treasury yields spurted higher after a report said US manufacturing unexpectedly returned to growth last month. It snapped a 16-month run of contraction, according to the Institute for Supply Management.

It’s the latest evidence showing the US economy remains strong despite high interest rates. That’s a positive for the sharemarket because it can drive growth in profits for companies. But it can also keep upward pressure on inflation. That in turn could mean a more hesitant Federal Reserve when it comes to the cuts to interest rates that investors crave.

Following the manufacturing data, traders on Wall Street briefly trimmed bets on the first cut to rates coming as soon as June. That’s still a “reasonable baseline” expectation, according to Deutsche Bank economists, but they say tough talk from Fed officials recently could hint at interest rates staying higher for longer than earlier thought.

The Fed has hiked its main rate to the highest level since 2001 in order to slow the economy and hurt investment prices enough to get inflation under control. Expectations for coming cuts have been a major reason the S&P 500 soared more than 20 per cent from October through March.

This week will offer several economic reports that could sway the Fed’s thinking, including updates on job openings across the country and the strength of US services businesses. The headliner arrives on Friday, when economists expect a report to show that hiring cooled a bit last month.

Tweet of the day

Quote of the day

‘I’ve got bad news: chances are it’s going to be a long time between drinks if you’ve got a mortgage. Forget the Easter bunny – Santa is likely to be checking twice whether you’ve been naughty or nice before there’s any cut in interest rates in Australia.’

That’s economist Chris Richardson, who explains why you shouldn’t hold your breath for a rate cut from the Reserve Bank.

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The tax watchdog has urged the Australian Taxation Office to wipe accumulated interest on old debts that people weren’t even aware of, after the tax office issued unexpected letters that distressed many Australians.

Inspector-General of Taxation and Taxation Ombudsman Karen Payne said her office was still receiving complaints about debts that were previously on hold or historical. These were “invisible” to taxpayers, as the sums – ranging from a few cents to thousands of dollars and some from before 2017 – did not show up on the ATO’s internet portal.