RBA's monetary decision decelerates decline: Aus shares close 0.3% lower

Market Reports

by Michael Luu

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The Australian sharemarket continued to navigate red waters in afternoon trade, but began to recoup losses since midday. The RBA’s decision to maintain its easy monetary stance put the brakes on the broader descent.

Commodity-based stocks joined hands to form a strong resistance effort against the broad-based decline, as coal, iron ore and oil players gained ground. Hence, Energy and Materials led the push-back, as BHP (ASX:BHP), Rio Tinto (ASX:RIO) and Origin Energy (ASX:ORG) all tracked higher.

At the closing bell, the S&P/ASX 200 was 0.27 per cent or 19.00 points lower at 7142.60.

Economic News

The Reserve Bank of Australia has confirmed the official cash rate will remain unchanged at 0.1 per cent and hinted at maintaining record-low interest rates till 2023.
The Australian central bank has justified its monetary policy decision by pointing at unemployment, wage growth and inflation data remaining below targets.

Futures

The Dow Jones futures are pointing to a rise of 107.00 points.
The S&P 500 futures are pointing to a rise of 13.75 points.
The Nasdaq futures are pointing to a rise of 41.75 points.
The SPI futures are pointing to a fall of 23 points when the market next opens.

Best and worst performers

The best-performing sector was Energy, up 1.34 per cent. The worst-performing sector was Financials, down 0.72 per cent.

The best-performing stock in the S&P/ASX 200 was Whitehaven Coal (ASX:WHC), closing 5.71 per cent higher at $1.67. It was followed by shares in Reece (ASX:REH) and Megaport (ASX:MP1).

The worst-performing stock in the S&P/ASX 200 was Blackmores (ASX:BKL), closing 4.99 per cent lower at $67.37. It was followed by shares in Lynas Rare Earths (ASX:LYC) and PolyNovo (ASX:PNV).

Asian markets

Japan's Nikkei has lost 0.16%.
Hong Kong's Hang Seng has gained 0.62%.
China's Shanghai Composite has gained 0.06%.

Commodities and the dollar

Gold is trading at US$1914.67 an ounce.
Iron ore is 4.40 per cent higher at US$198.83 a ton.
Iron ore futures are pointing to a rise of 6.23 per cent.
Light crude is trading $0.77 higher at US$65.29 a barrel.
One Australian dollar is buying 77.37 US cents.


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