The Australian market soared, lost ground, headed into negative territory and ended the day flat as investors reacted to the RBA’s decision to bring down interest rates to a new record low.
Here’s the scoreboard:
- S&P ASX 200: 5,826.50 -1.00 (-0.02%)
- All Ordinaries: 5,816.20 +0.30 (+0.01%)
- AUD/USD: 0.7894 +0.0058 (+0.73%)
In the US, the S&P 500 index closed up 0.3%. On the local market, six sectors closed higher and four lower.
The ANZ was the only bank to gain significant ground, closing up 2.65% to $34.12. Balanced against that was BHP, down 2.37% to $32.56.
The top stories for Tuesday:
1. Record low interest rates. The dollar, after an initial sell off, went higher as the RBA cut official cash rates to 2% from 2.25%.
2. Services. Australia’s massive services sector has slipped back into negative territory, according to the Ai Group’s April Performance of Services Index (PSI).
3. The ANZ’s results. Better than expected cash half year profit up 5% at $3.676 billion.
4. Australia’s trade deficit narrowed in March, but by less than expected.