Australia Market falls after RBA decision

The Australian share market finished session modestly down on Tuesday, 02 November 2021, on profit-taking after the Reserve Bank announced its decision to keep its cash rate target unchanged at a record low but discontinued its target of 10 basis points for the April 2024 Australian Government Bond, opening the door for an earlier interest rate hike amid an improving economic recovery and rising inflation.

Traders were also awaiting a pivotal US Federal Reserve policy meeting announcement due on Wednesday that could reveal more about its plans to taper stimulus measures and hike rates.

At closing bell, the benchmark S&P/ASX200 fell 46.45 points, or 0.63%, to 7,324.32. The broader All Ordinaries index dropped 45.60 points, or 0.59%, to 7,646.56.

Shares of materials and resources were the biggest laggards on the benchmark index, as iron ore prices fell on poor demand outlook. BHP Group and Rio Tinto were down between 2% and 2.5%.

Financials fell, as insurers and the "Big Four" banks all closed lower. Westpac (WBC) extended yesterday's losses, down 2.7%, following the release of its FY21 results. Insurance Australia Group was down 7% after it warned of higher costs due to bad weather.

Industrial property group Goodman Group shares was one of the strongest performers today, up 5.6%, after provided its quarterly operational update to the market. The company upgraded its earnings guidance for FY22, with operating earnings per share growth expected to be in excess of 15%.

CURRENCY NEWS: The Australian dollar fell to $0.7463 against an earlier high of $0.7532 following the RBA's announcement.

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