Australia Market falls on RBA rate hikes

6 Dec 2022 , 01:56 PM

Australia stock market finished session with losses on Tuesday, 06 December 2022, giving up some of the gains in the previous session, weighed down by tech and realty stocks, after the Reserve Bank lifted the cash rate for the eighth time this year, taking it to the highest level in 10 years. Also weighing sentiments was concern over the prospect of prolonged U.S. monetary tightening after the release of stronger-than-expected November service sector data in the worlds largest economy. At closing bell, the benchmark S&P/ASX200 index was down 34.30 points, or 0.47%, to 7,291.30. The broader All Ordinaries index was erased 40.1 points, or 0.53%, to 7,487.70. Total 7 of 11 sectors were lower along with the S&P/ASX 200 Index. INFORMATION TECHNOLOGY issue underperformed, losing 2%, followed by A-REIT (down 1.1%), MATERIALS (down 0.8%), and CONSUMER DISCRETIONARY (down 0.6%). Utilities was the best performing sector, gaining +0.53%. The top performing stocks in S&P/ASX200 index were WHTEHAVEN Co and FLETCHER BUILDING, up 2.7% and 2.6% respectively. The bottom performing stocks in S&P/ASX200 index were NOVONIX and ST BARBARA, down 8.85% and 8.76% respectively. Shares of tech companies slumped amid rising fears around increasing interest rates. Software company Xero plunged by nearly 4% and Novonix plummeted 8.8%. Shares of gold miners were also on the retreat as the price of the precious metal dipped amid a surge in the US dollar overnight – Novonix had the biggest decline on the ASX 200 index. Shares of coal miners were up amid a jump in prices for thermal coal, used in power stations – Whitehaven, Coronado and New Hope were roe between 2-3%. ECONOMIC NEWS: The RBA lifted the cash rate by a by 0.25 of a percentage point to 3.1% as part of its battle against ballooning inflation. RBA governor Philip Lowe said the bank would need to keep a close eye on labour costs, household spending and the price-setting behaviour of firms to avoid a ?prices-wages spiral?. He flagged further rate rises for next year. The Australian Bureau of Statistics released data on Tuesday that showed consumer spending climbed 20.7% from the previous corresponding period. CURRENCY NEWS: The Australian dollar was up 0.24% at $0.6722 against greenback.Powered by Capital Market – Live News