Afternoon update: ASX trading 1.08% lower as RBA keeps rates unchanged at 4.1%

 

The S&P/ASX 200 is trading 1.08 per cent lower at 6,957.

Staying on the Australian front, the Reserve Bank of Australia has maintained the cash rate at 4.1 per cent for the fourth consecutive month, citing concerns about persistently high inflation and the possibility of further monetary tightening to bring inflation back to target. This decision comes amid rising oil prices and global bond yields, and it's the first meeting under new governor Michele Bullock, with a crucial consumer price index report scheduled for release on October 25th.

Bond yields decreased as traders anticipated the Reserve Bank of Australia to strengthen its dedication to achieving the inflation target in its policy statement. The three-year government bond yield declined by 3 basis points to 4.10 percent, while the 10-year bond yield dropped by 2 basis points to 4.56 percent, and three-year bond futures declined by five ticks to 95.87.

Futures

The SPI futures are down 90 points.

Best and worst performers

The best-performing sector is Health Care, up 0.51 per cent. The worst-performing sector is Energy, down 3.51 per cent.

The best-performing large cap is Meridian Energy (ASX:MEZ), trading 1.49 per cent higher at $4.78. It is followed by shares in Brambles (ASX:BXB) and CSL (ASX:CSL).

The worst-performing large cap is Evolution Mining (ASX:EVN), trading 5.18 per cent lower at $3.11. It is followed by shares in Mineral Resources (ASX:MIN) and Whitehaven Coal (ASX:WHC).

Asian markets

Japan's Nikkei has lost 1.24 per cent.

Hong Kong's Hang Seng has lost 3.34 per cent.

China's Shanghai Composite has gained 0.67 per cent.

Commodities and the dollar

Gold is trading at US$1,833.20 an ounce.

Light crude is trading $0.76 lower at US$88.06 a barrel.

One Australian dollar is buying 63.51 US cents.
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Source: Finance News Network