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Australian Shares Retreat 0.6% Ahead of RBA Rate Decision

Published 07/06/2022, 10:52 am
Updated 07/06/2022, 10:58 am
© Reuters
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By Oliver Gray 

Investing.com - The S&P/ASX 200 fell 45.5 points or 0.6% to 7,160.8 after the first hour of Tuesday’s deals, extending losses of 0.5% in the previous session as market participants await the Reserve Bank of Australia’s interest rate decision due later in the session amid expectations of either a 25 or 40 basis point hike.

ASX 200 Futures were down 0.7%.

Among stocks, Consumer Discretionary led declines, down 0.9% with JB Hi-Fi Ltd (ASX:JBH) falling 0.3%, Crown Ltd (ASX:CWN) down 1.3%, Domino's Pizza Enterprises Ltd (ASX:DMP) dipping 0.3% and Wesfarmers Ltd (ASX:WES) down 1.9%.

Real estate companies retreated 1.1% with Goodman Group (ASX:GMG) down 1.2%, Charter Hall Group (ASX:CHC) falling 1.1%, Mirvac Group (ASX:MGR) dipping 0.7% and Scentre Group Ltd (ASX:SCG) declining 1.3%.

Financials fell 0.8% with Macquarie Group Ltd (ASX:MQG) falling 1.2%, Australia and New Zealand Banking Group Ltd (ASX:ANZ) down 0.7%, National Australia Bank Ltd (ASX:NAB) falling 1.5%, Commonwealth Bank Of Australia (ASX:CBA) down 1.2% and Westpac Banking Corp (ASX:WBC) falling 1%.

Energy declined 0.6% as Santos Ltd (ASX:STO) declined 1.1%, Beach Energy Ltd (ASX:BPT) lost 0.5%, Viva Energy Group Ltd (ASX:VEA) dipped 0.2% while Woodside Energy Ltd (ASX:WDS) eased 0.1%.

On the data front, the AIG services index fell to 49.2 in May from 57.8 in the previous month to post the first contraction in 6 months. In addition to the RBA’s rate decision and statement, traders will be keeping an eye on fresh building approvals and private house approvals data.

On the bond markets, Australia 10-Year rates were higher at 3.52% while United States 10-Year yields were at 3.05%.

In New Zealand, the NZX 50 lost 1.2% to 11,293.

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