Australia Market tumbles after RBA hawkish rate hike
07-Jun-22   16:39 Hrs IST
Australian share market finished session steep lower on Tuesday, 07 June 2022, after the Reserve Bank of Australia surprised markets by lifting the official cash rate by a bigger-than-expected 50 bps and flagged more tightening to come in a bid to contain inflationary pressure.

The Reserve Bank of Australia (RBA) lifted its cash rate by a bigger-than-expected 50 basis points to 0.85%

At closing bell, the benchmark S&P/ASX200 decreased by 110.53 points, or 1.53%, to 7,095.74. The broader All Ordinaries index declined by 114.53 points, or 1.54%, to 7,318.58.

All 11 sectors ended lower along with the S&P/ASX 200 Index, with information technology, healthcare, real estate, consumer discretionary, financials, and telecommunication services issues suffered the largest percentage losses.

The top performing stocks in this index were SANDFIRE RESOURCES and INGHAMS GROUP, up 3.4% and 3.2% respectively. The bottom performing stocks in this index were ZIP CO. and CLINUVEL PHARMACEUTICALS, down 14.4% and 6.7% respectively.

Retail stocks were hit hard on concerns that high inflation rates and rising interest rates will weigh on consumer spending this year. Wesfarmers lost 3.9% and JB Hi-Fi gave up 3.5%.

Shares of financials slipped, with Big Four banks down between 1.5% and 3.3%, with National Australia Bank leading the decline. Commonwealth Bank of Australia shed 2.6%, Westpac slipped 2.1% and National Australia Bank slid 3.3% while Australia and New Zealand Banking Group shed 1.5%.

Tech stocks tumbled with shares of Block Inc losing 2.9%. Mining, energy and gold stocks all fell as the spectre of further rate hikes loomed.

CURRENCY NEWS: The Australian dollar momentarily jumped as high as $0.7245 but later retreated from those levels, last trading at $0.7198.

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