Australian shares fall ahead of Reserve Bank rates talk
The recent downward trend continues for Australian shares as investors await hints from the Reserve Bank on the future path of interest rates.
THE local share market is on track for a fifth losing day in the past six sessions ahead of Reserve Bank commentary on the future direction of interest rates.
At midday on Tuesday, the benchmark S&P/ASX200 index had dropped 44 points, or 0.49 per cent, to 8,850.8, while the broader All Ordinaries had slid 43.7 points, or 0.52 per cent, to 9,134.7.
The Reserve Bank was all but certain to leave interest rates on hold on Tuesday afternoon with inflation lingering, Capital.com analyst Kyle Rodda said, but its commentary would be critical for the market trying to gauge the central bank’s assessment of the balance of risks.
“Will the RBA remain steadfast in its commitment to keep inflation around target, potentially at the expense of the labour market? Or will it blink at the prospect of a rising unemployment rate and keep cuts on the table,” he said.
At midday nine of the ASX’s 11 sectors were lower, with health care and technology higher.
The utilities sector was the biggest mover, falling 2.2 per cent as Origin Energy dropped 3.4 per cent.
All the big four banks were lower, with CBA falling 1.3 per cent, ANZ and NAB both dropping 0.6 per cent and Westpac retreating 0.7 per cent.
In the heavyweight mining sector, BHP had lost 1.0 per cent, Rio Tinto dropped 2.2 per cent and Fortescue had declined 2.4 per cent.
Goldminers were mostly higher with Capricorn Metals climbing 1.9 per cent and Northern Star advancing 0.6 per cent.
In the technology sector, Wisetech Global had grown 2.3 per cent and NextDC had risen 3.6 per cent.
Auto dealership chain Eagers Automotive was the biggest loser in the ASX200, falling 5.8 per cent, while defence contractor Droneshield was the biggest winner, climbing 5.4 per cent.
The Australian dollar was buying 65.32 US cents, from 65.59 US cents at 5pm on Monday.
