The Australian share market fell on Wednesday as risk appetite soured following an unexpected interest rate hold by the Reserve Bank of Australia (RBA) yesterday and renewed trade rhetoric from United States President Donald Trump overnight.
The benchmark S&P/ASX 200 Index closed 52.1 points or 0.6% lower at 8,538.6, with seven of the 11 sectors finishing in the red.
Rate-sensitive real estate stocks led the market lower after the RBA surprised investors by keeping the official cash rate on hold at 3.85%. The decision defied market expectations for a 25 basis point cut and dampened risk appetite across equity markets.
Goodman Group dropped 2.6%, Stockland fell 1.5%, and Mirvac declined 0.9%.
The Materials sector also came under pressure after Trump’s copper announcement sparked a decline in prices. Copper futures on the London Metals Exchange slumped as much as 2.4% overnight.
Sandfire Resources fell 3.5%, Capstone Copper lost 3%, while MAC Copper slipped 0.4%
Gold miners were also hit, with bullion falling below US$3,300 an ounce. Northern Star Resources declined 3.4%, and Newmont dropped 5.4%
Major iron ore producers BHP and Rio Tinto also finished marginally lower, down 1% and 0.6%, respectively.
Among the day’s notable corporate movers, Lifestyle Communities shed 37.2% after a landmark tribunal ruling found that its deferred management fees - also known as exit fees - violated Victorian state tenancy laws, striking a blow to its revenue model.
Orica rose 2.9% following the announcement that outgoing Boral CEO Vik Bansal would become its next chairman.
On the bond market, 10-year and 2-year Australian government bond yields were up 0.9% apiece at 4.353% and 3.420%, respectively.
