Market Wrap / shock hold

The RBA’s surprise decision to keep the cash rate on hold sent the S&P/ASX 200 lower, before a late afternoon come back, leaving the index fairly flat at 8,590.7 points this Tuesday.

The RBA justified its 3.85% call, saying that inflation looked more balanced while the labour market remained strong. Locally, the consumer staples sector shed 1.6%, with one less reason for investors to go defensive. The real-estate sector also suffered, down 0.9% today. Meanwhile, the Aussie edged higher against major currencies. And the miners were in the red as Trump clarified its tariff intentions for a batch of countries. BHP receded 1.1%. However the gold miners somehow reversed course from yesterday’s loss as uncertainty remains on the tariff front. And in company news, Cochlear received US FDA approval for three sound processor products. While markets will continue to digest the RBA decision, the RBNZ will hand down its own tomorrow.