ASX 200 Drops 1.5% as RBA Delivers 0.5% Hike

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ASX 200 Drops 1.5% as RBA Delivers 0.5% Hike

By Oliver Gray 

Investing.com - The S&P/ASX 200 fell 110.6 points or 1.5% to 7,095.7 during Tuesday’s trade, extending declines of 0.5% yesterday as risk sentiment soured after Reserve Bank of Australia’s policymakers lifted the official cash rate by an unexpected 50 basis points to 0.85%, in a move designed to combat increasing inflationary pressures.

Among stocks, Information Technology was hardest hit, down 3% with Appen Ltd (ASX: APX ) falling 0.7%, Block Inc (ASX: SQ2 ) slipping 2.9%, Megaport Ltd (ASX: MP1 ) droping 5.6%, Link Administration Holdings Ltd (ASX: LNK ) falling 1.9%, Novonix Ltd (ASX: NVX ) down 3.7% and Brainchip Holdings Ltd (ASX: BRN ) falling 2.4%.

Real estate companies also declined 3% collectively with Goodman Group (ASX: GMG ) down 3.7%, Charter Hall Group (ASX: CHC ) falling 3.5%, Mirvac Group (ASX: MGR ) down 3.2% and Scentre Group Ltd (ASX: SCG ) falling 2.5%.

Consumer Discretionary shed 2.3% overall with Wesfarmers Ltd (ASX: WES ) down 3.9%, Aristocrat Leisure Ltd (ASX: ALL ) dropping 1.1%, JB Hi-Fi Ltd (ASX: JBH ) sjeddomg 3.5% and Domino's Pizza Enterprises Ltd (ASX: DMP ) down 2%.

Financials were 2.3% lower as Macquarie Group Ltd (ASX: MQG ) lost 3%, Australia and New Zealand Banking Group Ltd (ASX: ANZ ) 1.5%, National Australia Bank Ltd (ASX: NAB ) fell 3.3%, Commonwealth Bank Of Australia (ASX: CBA ) dropped 2.6% and Westpac Banking Corp (ASX: WBC ) fell 2.1%.

Zip Co Ltd (ASX: ZIP ) also shed 13.4%.

On the bond markets, Australia 10-Year rates were closer to fresh 8-year highs at 3.56% while United States 10-Year yields were at 3.047%.

In New Zealand, the NZX 50 lost 1.3% to 11,265.7.

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