Australian stocks surge, then plunge, on interest rates cut

Merry-go-round. Alexander Hassenstein/Getty Images

The Australian market jumped higher on a cut in official interest rates.

The ASX 200 spiked at 5888.9, about 0.7 percentage points up for a 1.05% day gain, on the announcement from the RBA to cut to 2% from 2.25%.

The rally, however, was short lived, with the ASX 200 dipping again and falling through Monday’s close.

The market was being led by the ANZ Bank which today announced solid half year cash profit up 5%. The bank’s shares were trading 3.43% higher at $34.38.

Westpac, which yesterday announced disappointing flat half year profit, was down 1.18% to $35.18.

NAB was down 0.55% to $36.09 and Commonwealth 0.03% to $87.98.

BHP was down 2.7% to $32.45.

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