Australian stocks fell after the RBA cut the cash rate.
- S&P ASX 200: 5,540.50 -46.89 -0.84%
- All Ordinaries: 5,622.10 -48.04 -0.85%
- AUD/USD: 0.7543 +0.0005 +0.07%
The local market briefly surged higher but then extended its falls after official rates fell 0.25 percentage points to a record low of 1.5%.
All sectors ended weaker with energy stocks losing more than 3%. The banks and the big miners also lost ground.
Westpac dropped 0.8% to $30.83 and the NAB 0.4% to $26.59.
BHP shed 2% to close at $19.24 and Santos 5.8% to $4.23.
Credit Corp closed 13% higher at $15.15 after the debt collector posted a 20% rise in net profit to $45.9 million.
The top stories:
1. Cheap cash. The Reserve Bank of Australia cut interest rates by 25 basis points to a fresh record-low of 1.50%. Also read: CBA is the first bank to cut home loan rates but only by 0.13 percentage points.
2. Snowy Mountain Engineering Corporation goes. The business that built the Snowy Mountains scheme has been sold to a Singapore company.
3. Earnings to fall. Seven West Media posted a weak full year revenue result and a flat outlook for the next 12 months. Its shares lost more than 18% to close at $0.845.
4. Luxury retailing is exploding. Tourists from Asia, mainly China, are driving strong revenue growth.
5. Australia’s residential construction boom is now past its peak. Building approvals fell heavily for a second consecutive month in June.
6. The trade deficit just blew out again. The Australian Bureau of Statistics shows a seasonally adjusted deficit of $3.195 billion for June.
7. For next week’s diary. Here’s what to do if you’re away on Census night.
8. Judge and be judged. A Harvard psychologist says people judge you based on 2 criteria when they first meet you.