Australia Market ends 0.4% down

The Australian share market finished session lower on Tuesday, 05 October 2021, on tracking negative lead from Wall Street overnight, as surging oil prices stirred worries over the global economic recovery. However, market losses capped as the Reserve bank kept interest rates on hold and reiterated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3% target range.

At closing bell, the benchmark S&P/ASX200 fell 30.18 points, or 0.41%, to 7,248.36. The broader All Ordinaries index dropped 40.27 points, or 0.53%, to 7,536.50.

Total 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Information Technology was the worst performing sector, falling 5.8%, while the Consumer Staples was the best performing sector, gaining +0.36%.

The bottom performing stocks in this index were SEALINK TRAVEL GROUP and APPEN, down 6.27% and 5.03% respectively. The top performing stocks in this index were SEALINK TRAVEL GROUP and APPEN, up 6.3% and 5% respectively.

Technology stocks tumbled inline with drop of US peers in the face of rising Treasury yields. Buy-now-pay-later giant Afterpay shed 5 per cent. Artificial intelligence firm Appen also settled 5% lower.

Shares of banks and financials were also down, with three of the so-called "Big Four" banks - National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking - down between 0.1 per cent and 0.7 per cent.

Shares of energy companies rose after crude oil prices settled up as crude oil prices hit a seven-year high on Monday, as producer group Opec+ stuck to existing output plans at its latest meeting, despite a surge in natural gas prices increasing oil demand. Members had agreed this summer to add 400,000 barrels a day of production each month until the end of next year. Shares of Beach Energy and Santos in Australia rose 0.7% and 2.54%, respectively.

ECONOMIC NEWS: RBA Leaves Policy Rates Unchanged- Australia's RBA policy board headed by Governor Philip Lowe decided to leave its cash rate unchanged at a record low of 0.10%. The board maintained the target of 10 basis points for the April 2024 Australian Government bond. The board also voted to continue with the purchase of government securities at the rate of A$4 billion a week until at least mid February 2022. The bank repeated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3% target range. The central scenario for the economy is that this condition will not be met before 2024.

Australia Markit Services PMI Continue To Contract In September - Australia services sector continued to contract in September, with a services PMI score of 45.5, the latest survey from Markit Economics showed on Tuesday. That's up from 42.9 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Also, the composite PMI improved to 46.5 from 43.3 in the previous month.

Australia Posts $15.077 Billion Trade Surplus In August- Australia posted a merchandise trade surplus of A$15.077 billion in August, the Australian Bureau of Statistics said on Tuesday, up from A$12.117 billion in July. Exports were up 4.0% on month or A$1.923 billion to A$48.524 billion after rising 5.0% a month earlier. Imports fell 1.0% on month or A$506 million to A$33.446 billion after rising 3.0% in July.

CURRENCY NEWS: The Australian dollar changed hands at $0.7271, largely holding on to gains after its rise from below $0.724 late last week.

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