The numbers:
The Australian sharemarket was unable to maintain its positive momentum,ending Tuesday’s session firmly in the red after the.
The S&P/ASX 200 slid by nearly 0.5 per cent,or 34.9 points,to 7504.1,with the index plummeting sharply after the 2.30pm rate announcement.
Wall Street retreated to start the week.AP
The lifters:
Energy players were the best performers of the day,with the sector up 0.5 per cent. New Hope Corporation finished at the top of the pack,up 3.7 per cent,followed by Link Administration Holdings and Magellan Financial Group,both surging 3.4 per cent.
The laggards:
The day’s biggest loser was car accessories maker ARB Corporation,which shed 12.3 per cent of its share price value. Affordable housing developer Lifestyle Communities and diversified fund manager Centuria Capital Group lost 5.7 per cent and 5.6 per cent respectively,even though the Centuria’s.
The lowdown:
It wasn’t therise that sent markets into the red today,but RBA governor Philip Lowe’s “hawkish” comments of more to come,said AMP Capital chief economist and head of investments strategy Shane Oliver.
“Up until now,there was the feeling that the RBA was signalling a possible pause ahead and it was getting close to the top,whereas the[monetary policy decision] statement was a lot more hawkish,so that weighed on the market,” he said.
Oliver also noted that the property sector,which shed 1.6 per cent,was particularly interest rate sensitive.
“It was only a 0.5 per cent fall – but still ... the RBA dropped the market.”
Elsewhere,Macquarie Group edged up 0.7 per cent after revealing,offsetting the weaker earnings in the investment heavyweight’s flagship asset management arm.
“Varied market conditions have resulted in a good quarter for the group reflecting the diversity of our activities,” CEO Shemara Wikramanayake said in a statement.
Toll road operator Transurban slipped 0.6 per cent after for the December half.
“Our roads have benefitted from freight volumes which achieved an all-time high,ongoing traffic growth in our core markets,” Charlton said.
Meanwhile,Nuix’s shares stormed up nearly 44 per cent after its trading halt was lifted in the afternoon. A former chief executive of the tech company has worth almost as much as the controversial tech stock’s current market value.
Overnight on Wall Street,the S&P 500 fell 25.40,or 0.6 per cent,to 4,111.08 for its second straight fall after a stunningly strong report on the US jobs market dented the market’s hopes for easing interest rates. The Dow Jones Industrial Average fell 34.99 points,or 0.1 per cent,to 33,891.02,while the Nasdaq composite dropped 119.50,or 1 per cent,to 11,887.45.
Higher rates slow the economy by design,in hopes of limiting the purchases by households and businesses that can fuel inflation. But they also raise the risk of a severe recession and hurt markets in the meantime.
Tweet of the day:
Quote of the day:
“High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations,it would be very costly to reduce later.” That’s Reserve Bank governor Philip Lowe.
“The board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.”
You may have missed:
“Almost a lubricant”:That’s how ASX-listed olive oil producer Cobram Estate’s joint CEO Leandro Ravetti described vegetable and refined oils. He insists he’s not spruiking Cobram Estate specifically,but is championing the entire extra virgin olive oil sector and its health benefits.
However,the $582.1 million company has some way to go in.
WithAP
The Market Recap newsletter is a wrap of the day’s trading..