The Australian share market has fallen one per cent as investors wait for the Reserve Bank’s interest rate decision and outlook.
The RBA is widely expected to keep the cash rate on hold when it announces its decision at 1430 AEST.
Investors are more interested in the central bank’s statement for clues as to whether there will be more interest rate cuts this year, Phillip Capital, senior client adviser, Michael Heffernan said.
“The biggest factor on the market today is the interest rate decision,” he said.
“It’s likely the Reserve Bank won’t do anything today but if they give the signal that they’ll move interest rates in a downward direction that should give a boost for the banks which have been knocked around a bit lately.”
He said the local bourse had ignored solid leads from Wall Street with the energy and mining stocks suffering the biggest losses due to weak oil and commodity prices.
In the resources sector, BHP Billiton was down 73 cents, or 2.5 per cent, at $28.46, Rio Tinto was 86.5 cents weaker, or 1.51 per cent, at $56.555, while Fortescue Metals was up two cents at $2.40.
Among the banks at 1200 AEST, Commonwealth Bank was minus 88 cents, or 1.04 per cent, to $83.60, ANZ had declined 26 cents, or 0.79 per cent, to $32.46, National Australia Bank had shed 34 cents, or one per cent, to $33.69 and Westpac was off 50 cents, or 1.51 per cent, at $32.62.
Making news, pizza and coffee maker Retail Food Group was down 10 cents at $6.39 after it said it will take an $18.5 million hit as it looks to streamline its operations following a string of acquisitions.
IVF provider Virtus Health has fallen more than 17 per cent, or $1.33, to $6.30 after it cut its earnings forecast for the 2015 financial year.
On Wall Street overnight, stocks rose slightly ahead of a busy week of economic news.
The Dow Jones Industrial Average added 29.69 points, or 0.16 per cent, to 18,040.37 points.
KEY FACTS
* At 1200 AEST on Tuesday, the benchmark S&P/ASX200 index was down 62.2 points, or 1.08 per cent, at 5,673.2 points.
* The broader All Ordinaries index was down 59.1 points, or 1.03 per cent, at 5674.9 points.
* The June share price index futures contract was down 53 points at 5,677 points, with 18,649 contracts traded.
* National turnover was 657 million securities worth $1.36 billion.
