Viva Energy was down 19 cents (6.6 per cent) at $2.77 as it traded without the rights to its 14-cent dividend for the first time.

Meanwhile,Seven West Media finished the day’s trade around a percentage point lower after signing a$4.5 billion broadcast deal with the AFL on Tuesday.

Sean Sequeira from Australian Eagle Asset Management said cyclical stocks such as energy and materials,which are linked to global economic growth,were being shunned as investors flocked to stocks that would hold value in the face of worsening headwinds.

“It could be that the market is starting to discern between what they would consider to be quality in the long term and what would be at risk from a downturn,” he said.

While the Reserve Bank’s decision to raise interest rates by half a percentage point surprised no one,Sequeira said investors’ eyes were cast to further rises on the horizon.

“Everyone expected rates to go up - what they were looking for was how many more[rate rises] there would be,and how hawkish the RBA would be about raising rates,” he said.

“It looks like they are very,very concerned about inflation and committed to getting it under control.”

Stocks closed lower on Wall Street on Tuesday,extending the market’s losses from last week. US markets were closed on Monday’s Labor Day holiday.

The S&P 500 fell 0.4 per cent after bouncing between a gain of 0.5 per cent and a loss of 1 per cent. The Dow Jones Industrial Average fell 0.6 per cent and the Nasdaq lost 0.7 per cent.

Tweet of the day:

Quote of the day: “In these circumstances,more than ever,the level of competition between airlines is incredibly important to maintain pressure on ticket prices and service levels across the industry.” ACCC chair Gina Cass-Gottliebafter the consumer watchdog found the cost of domestic flights had soared due to staff shortages,strong demand and high jet fuel prices.

You may have missed: Australia’s economy grew by 0.9 per cent in the June quarter,recording a third consecutive quarter of growth. Federal treasurer Jim Chalmers played down the figures,saying a deteriorating global growth outlook,continuing labour shortages,and rising interest rates are “straining businesses and households and creating headwinds for our economy over the year ahead”.

With AP

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