At closing bell, the benchmark S&P/ASX200 index was down 15.22 points, or 0.21%, to 7,336.30. The broader All Ordinaries index fell 7.91 points, or 0.1%, to 7,544.58.
Total 9 of 11 sectors were lower along with the S&P/ASX 200 Index. Telecommunication services was the worst performing sector, falling 1.18%, followed by information technology (down 1.1%), and consumer staples (down 1.03%). Materials was the best performing sector, gaining +0.61%
The top performing stocks in S&P/ASX200 index were JOHNS LYNG GROUP and HUB24, up 13.21% and 7.74% respectively. The bottom performing stocks in S&P/ASX200 index were INGENIA COMMUNITIES GROUP and MONADELPHOUS GROUP, down 13.42% and 8.81% respectively.
Shares of BHP's was down dropped 0.3% to $48.30, after the company said that its underlying profit for the six months to December had fallen by 32% to a weaker-than-expected $US6.5 billion ($9.4 billion) after strict COVID-19 lockdowns in China and concerns about an economic slowdown pummelled the price of iron ore.
ECONOMIC NEWS: Australia Composite PMI increased to 49.2 in February from 48.5 the prior month but continued to stay in contraction, flash survey results S&P Global showed on Tuesday. Private sector activity continued to contract in February but at the slowest pace in four months amid easing cost pressures. The services Purchasing Managers' Index climbed to a 4-month high of 49.2 in February from 48.6 in January. At the same time, the manufacturing PMI edged up to 50.1 from 50.0. The index rose to a two-month high in February, and the score signalled a modest expansion.
Reserve Bank of Australia Governor Philip Lowe and his mates would be advocating for more interest rate hikes as Australian inflation is critically stubborn. The Australian Consumer Price Index (CPI) has refreshed its multi-decade of 7.8% and is showing no signs of softening ahead in spite of the fact that the Official Cash Rate (OCR) has been already pushed to 3.35%.
The message from the RBA minutes was clear that more interest rates are warranted as strong consumer demand is not allowing Australian inflation to soften from its peak. According to the RBA minutes, policymakers also considered the option of 50 basis points (bps) interest rate hike considering the persistence of inflation. The RBA members also highlighted that the Unemployment Rate is the lowest in the past 50 years and job vacancies are extremely high, which is delighting households for flushing surplus funds into the economy.
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