The Australian sharemarket extended losses on Tuesday as interest-rate-sensitive sectors sold off following the Reserve Bank of Australia’s widely expected 25-basis-point rate cut to 4.1 per cent—the first reduction since 2020.
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The Reserve Bank of Australia (RBA) has taken a significant step by lowering its cash rate from 4.35% to 4.10%—its first cut since 2020. This decision marks an important pivot in monetary policy, aimed at supporting economic recovery while keeping inflation in check.
ASX Slips as Property and Energy Stocks Weigh on Market
The S&P/ASX 200 fell 0.5% (42.7 points) to 8,494.40 on Tuesday, driven by declines in property and energy stocks. The Australian dollar eased to US63.44¢ after reaching a two-month high on Monday.
Following the earnings release, the stock experienced a sharp 7% sell-off at market open. This pronounced negative reaction indicates that investors are increasingly wary of the sustainability of the reported earnings growth amid evident headwinds.
Challenger exceeded EPS expectations and maintained strong capital and cost control, but asset and liability experience losses, weaker annuity sales, and accounting distortions impacted statutory profits. While structural improvements in capital efficiency and expense management are evident, sales momentum in annuities remains a key challenge going into H2 FY25.
Challenger exceeded EPS expectations and maintained strong capital and cost control, but asset and liability experience losses, weaker annuity sales, and accounting distortions impacted statutory profits. While structural improvements in capital efficiency and expense management are evident, sales momentum in annuities remains a key challenge going into H2 FY25.
The Australian sharemarket declined on Monday, with banks leading losses after underwhelming earnings reports from Westpac and Bendigo Bank. The S&P/ASX 200 Index fell 0.6% (54.60 points), retreating from Friday’s record high of 8555.8.
Audinate Group Limited reported 1H25 earnings that exceeded market expectations, particularly in terms of EPS (-$0.02 vs. -$0.12 expected). However, the company remains in a transitional phase, dealing with ongoing inventory overhang from OEM customers while seeing promising growth in software revenues and product mix shifts.
Stock closed just shy of record Friday as data pointing to weakness in the consumer and ongoing inflation concerns weighed upside momentum
Australian shares experienced an early boost but were trimmed by midday as profit-taking in Commonwealth Bank shares slowed gains. The index, which had risen as much as 0.8%, was up 0.3% at 8,567 points, while the All Ordinaries Index climbed 0.4%.
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