Australian Shares Edge Up in Narrow Range; RBA Rate Decision Sparks Volatility
Australia’s benchmark S&P/ASX 200 inched up 0.02% to 8,590.7 on Tuesday, oscillating narrowly after the Reserve Bank’s surprise decision to hold rates steady triggered intraday dips. The index briefly turned negative in early trading but recovered modestly by close.
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Sectors diverged sharply: The "big four" banks gained, with Commonwealth Bank (CBA) leading at +0.8%. Consumer discretionary, financials, and tech sectors closed higher. However, consumer staples dropped 1.4%—Coles fell 1.4%, and A2 Milk plunged 3.8%. Mining giants weakened: BHP (-0.9%), Rio Tinto (-0.4%), and Fortescue (-0.7%). Gold stocks outperformed, lifted by global prices at $3,344/oz—Evolution (+2.6%), Newmont (+2.4%), and Vault Minerals (+7.8%, amid takeover rumors) stood out.
Economists see an August rate cut likely. ANZ’s Hayden Boyton called the pause "unexpected but not a closed door" to easing; AMP’s Shane Oliver noted a five-week delay would have limited economic impact. Focus shifts to next month’s policy meeting as investors weigh rate paths across sectors.
