Market Overview
The S&P/ASX 200 closed up 78.50 points or 0.89% at 8,857.10 on Tuesday after rallying on Wall Street gains and stabilising metals prices. The index surged 117 points early but trimmed gains following the RBA's cash rate hike to 3.85%, its first in over two years amid resurgent inflation. Miners and banks led the resurgent performance despite the hawkish RBA tone noting inflation risks persisting above target.
Index & Breadth
The S&P/ASX 200 closed at 8,857.10, up 78.50 points or 0.89%. It hit an intraday high of 8,896.6 before pulling back post-RBA decision.
Sectors
- Information Technology +1.89%, boosted by bids ahead of US tech earnings from AMD, Amazon, and Google.
- Materials +1.49%, supported by rebounds in copper, silver, and gold prices.
- Consumer Discretionary +1.12%, gaining alongside broader market recovery.
- Utilities -1.12%, lagging amid rate hike sensitivity.
- Health Care +0.10%, showing minimal movement.
- Telecommunications Services +0.03%, nearly flat.
Stock Highlights
Standout Gainers
- DRO Droneshield Limited +7.83% to 3.720, leading gains on defence sector momentum.
- NEM Newmont Corporation +5.64% to 164.750, riding gold price stabilisation.
- CSC Capstone Copper Corp. +5.09% to 16.730, buoyed by copper rebound.
- EVN Evolution Mining Limited +4.18% to 14.460, supported by metals recovery.
Underperformers
- NEU Neuren Pharmaceuticals Limited -9.97% to 14.630, hit by pharma sector pressures.
- VNT Ventia Services Group Limited -4.31% to 5.550, weighing on industrials.
- GNC Graincorp Limited -3.56% to 5.970, dragged by staples weakness.
- TLX Telix Pharmaceuticals Limited -2.58% to 10.210, facing health care caution.
Commodities & FX
Gold BUY $7,090.37/oz, Silver BUY $135.57/oz, Platinum BUY $3,219.68/oz, Palladium BUY $2,699.55/oz. AUD/USD at 0.7011. Metals prices stabilised overnight, aiding ASX materials despite RBA hike.
Rates & Macro
RBA lifted cash rate by 25bp to 3.85%, first hike since November 2023, citing material inflation pickup in late 2025 and risks above target. Updated forecasts show end-2026 trimmed mean inflation at 3.2% and 35bp of further hikes implied.
Takeaways
- S&P/ASX 200 +0.89% to 8,857.10, rebounding from prior sell-off with intraday high 8,896.6.
- Information Technology +1.89% topped sectors, Materials +1.49% followed on metals lift.
- DRO +7.83%, NEM +5.64% led ASX 200 gains; NEU -9.97% biggest decline.
- RBA cash rate to 3.85% with hawkish outlook, end-2026 inflation forecast 3.2%.
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Gold BUY $7,090.37/oz, AUD/USD 0.7011 amid commodity stabilisation.
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