Australia Stocks extend losses on rate hike woes

15 Nov 2022 , 03:14 PM

Australia stock market finished session slightly in negative territory on Tuesday, 15 November 2022, as market participants digested minutes of the Reserve Bank of Australias Nov 1 meeting that showed the central bank is prepared to return to large interest-rate increases if the economy requires it. At closing bell, the benchmark S&P/ASX200 index was down 4.71 points, or 0.07%, to 7,141.63. The broader All Ordinaries index edged down 4.82 points, or 0.07%, to 7,345.41. Total 7 of 11 sectors ended higher despite the decline in the S&P/ASX 200 Index, with information technology (up 1.7%) sector was outperformed, followed by healthcare (up 1.4%), while Realty (down 1.5%) sector was worst performer, followed by materials (down 1%) and energy (down 0.9%) sectors. The top performing stocks in S&P/ASX200 index were IMUGENE and INCITEC PIVOT, up 7.7% and 5.9% respectively. The bottom performing stocks in S&P/ASX200 index were CORE LITHIUM and ALLKEM, down 15.8% and 12.4% respectively. Shares of materials declined on demand outlook concerns as doubts about Chinas Covid policy adjustments prevailed amid rising infections in the country. BHP Group and Fortescue Metals Group fell 0.2% and 0.8%, respectively, while Rio Tinto rose 0.4%. Energy stocks were also lower after OPEC cut its 2022 global demand forecast again, which saw oil prices fall further. Shares of financials were higher, with Commonwealth Bank of Australia rising 1.3% after the countrys largest lender reported better-than-expected cash earnings for the first quarter. ECONOMIC NEWS: The RBA on Tuesday released the minutes of its 1 November board meeting, notably omitting the words ?further increases are likely to be required over the period ahead?, which appeared in its October minutes and for earlier meetings. The minutes showed the central bank was still mulling whether a 25 or 50 basis point move was appropriate. In the end, it opted for a quarter-point increase, lifting the cash rate to a nine-year high of 2.85% and marking a record seven hikes in as many months. While not ruling out a return to larger increases, the board stated for the first time it was ?prepared to keep rates unchanged for a period while it assesses the state of the economy and the inflation outlook?. Powered by Capital Market – Live News