ASX higher on banks than the cash rate holds

"Australian banks underperformed significantly during the year to May, both in relation to the Australian market and their peers abroad," said Tim Baker, stock market strategist at Deutsche Bank. "But lately, they have attracted interest given their low price, and given their large size."

The four major banks were among the market leaders on Tuesday. Commonwealth Bank led the market with a 1.8% gain to $ 73.97. Westpac closed up 0.7% to 27.74 dollars, Westpac closed up 0.7% to 29.39 dollars and ANZ closed at 28.08 dollars, a gain of 0.9%.

a2 Milk action rose 3.4% to $ 10.72 with Synlait milk. As part of the agreement, there will be an increase in infant formula on which Synlait already holds exclusive rights. Synlait Milk shares also increased following the announcement, up 2.4% to $ 10.65.

Treasury Wine Estates announced plans to produce its premium brand Penfolds in California as part of the company's revised North American strategy with the first of the US wines in 2022. Its shares closed up 1.6 % at $ 17.39.

Beach Energy shares climbed 5.7% to $ 1.86 thanks to a JP Morgan broker upgrade. The broker upgraded the company from "underweight" to "neutral" and raised its target from $ 1.40 to $ 1.80

Materials stocks fell after a sharp decline in commodity prices. lowered the Bloomberg Commodity Index by 1.9%. This is the largest decrease since November 2016. This decrease is mainly due to the increasing trade tensions with the United States and the sharp rise of the US dollar during the night.

BHP Billiton led the market with a loss of 1.6%, closing at $ 33.05. Rio Tinto fell 3% to $ 80.80 and South32 closed at $ 3.57, down 1.9%

Insurance Australia Group fell 3.2% to $ 8.19. An article in The Australian Financial Review revealed that the company was preparing for a public relations nightmare when it will face the royal commission in September.

ASX's newcomer, Marley Spoon, saw his shares fall for a second day, with nearly a quarter of the company's value being erased in his first two days on the market. The actions of the supplier of the meal kit fell 8% to $ 1.10, after a drop of 15.9% Monday.