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ASX closes 0.95%: RBA expected to keep rates on hold

PUBLISHED

2024-02-05

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Shares declined broadly, particularly impacting miners and energy sectors, as investors took profits following a recent record high. This decrease occurred in anticipation of the Reserve Bank's policy decision, with expectations that they will maintain the cash rate at 4.35% due to a slowing inflation rate. The market is closely watching the central bank's statement for hints about potential future tightening or rate cuts, with bond futures indicating a 36% chance of a rate cut in May and full pricing for a move in August.

At the closing bell, the S&P/ASX 200 was 0.95 per cent lower at 7,625.90.

Futures

The Dow Jones futures are pointing to a fall of 89 points.

The S&P 500 futures are pointing to a fall of 13.25 points.

The Nasdaq futures are pointing to a fall of 52.75 points.

The SPI futures are down 81 points.

Best and worst performers

The best-performing sector was Health Care, up 0.13 per cent. The worst-performing sector was Materials, down 2.66 per cent.

The best-performing large cap was Pro Medicus (ASX:PME), closing 3.65 per cent higher at $108.63. It was followed by shares in WiseTech Global (ASX:WTC) and Fisher & Paykel Healthcare Corporation (ASX:FPH).

The worst-performing large cap was IGO (ASX:IGO), closing 5.49 per cent lower at $6.89. It was followed by shares in Mineral Resources (ASX:MIN) and Newmont Corporation (ASX:NEM).

Asian markets

Japan's Nikkei has gained 0.57 per cent.

Hong Kong's Hang Seng has lost 0.29 per cent.

China's Shanghai Composite has gained 1.74 per cent.

Commodities and the dollar

Gold is trading at US$2,046.70 an ounce.

Light crude is trading $0.24 higher at US$72.52 a barrel.

One Australian dollar is buying 65.10 US cents.

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