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The Australian share market tumbled yesterday, closing the trading session 1.5% in the red, after the RBA raised the cash rate yesterday, increasing the velocity of higher borrowing costs. In its June meeting yesterday, the RBA raised the cash rate by 50 basis points to 0.85%, which is the largest lift in 22 years – the last time it was raised this much was in February 2000. It is also the first time since 2010 that the cash rate has been raised for the second month in a row. So, the market negatively reacted to the rate hike, and had its worst day in almost 3 weeks. All industry sectors declined, with tech and real estate falling the most, both sectors are sensitive to interest rates.
Taking a closer look at the ASX200, the stocks that managed to make gains yesterday included Sandfire Resources (ASX:SFR), Inghams Group (ASX:ING) and Ampol (ASX:ALD), while the stocks that declined the most were BNPL company Zip (ASX:ZIP) and Clinuvel Pharmaceuticals (ASX:CUV).
The most traded stocks by Bell Direct clients yesterday were Australia & New Zealand Bank (ASX:ANZ), Lake Resources (ASX:LKE), Westpac (ASX:WBC), National Australia Bank (ASX:NAB) and Commonwealth Bank (ASX:CBA).
European stocks closed slightly lower amid inflation concerns, however over in the US it was a positive session, with all three major benchmarks closing higher. The Dow up 0.8%, the S&P500 up 0.95% and the Nasdaq up 0.9%.
What to watch today: