Rates, rallies and reports 📈
The RBA hiked rates but softened its tone in its statement, giving local equities a boost. The central bank raised the cash rate by 50bps to 1.85% as expected, but implored that policy is not on a “pre-set path”. The ASX 200 leapt out of negative territory, which it had been stuck in all day, to finish off the day’s trade flat at 6998. Yields dropped and the AUD/USD tumbled back below 70 cents. It was the consumer stocks that led the charge, helped along by financials and healthcare. Lower commodity prices weighed on the materials sector - energy stocks dropped after the overnight plunge in oil. As for the big movers, Appen shares shed 27% after the company released unaudited half year numbers showing a 70% drop in revenue, a big surprise to the downside on market consensus. Credit Corp shares dropped after full year results showed a slight revenue loss, smaller than expected dividend, and negative guidance. Looking ahead, US earnings will feature the likes of Uber, Caterpillar and PayPal while on the data front we'll be watching out for JOLTS Job Openings data out of the US tonight.
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