© Reuters.
The Australian stock market experienced a significant downturn on Tuesday, with the falling below 7,000 to a half-year low. This sharp decline was driven by several factors including global market turbulence, a robust US dollar, and rising treasury yields.
Mining companies such as BHP Group (NYSE:), Mineral Resources, Rio Tinto (NYSE:), and Fortescue Metals were among the major losers on Tuesday. The oil sector also took a hit with stocks like Santos, Origin Energy, and Beach Energy (OTC:) recording losses. Leading banks including Commonwealth Bank, ANZ Banking, and Westpac were not immune to this market downturn.
The impending interest rate decision from the Reserve Bank of Australia (RBA) has further added to the market’s unease. The RBA is expected to maintain its benchmark lending rate at 4.10 percent, which has left traders in a state of anticipation.
Despite the overall market volatility, the tech-heavy displayed positive movement on Tuesday. Meanwhile, Wall Street presented a mixed picture with some sectors experiencing losses while others managed to hold steady or record gains.
While the Australian stock market grapples with these challenges, investors and traders are keeping a close eye on global economic indicators and domestic policy decisions that could influence future market movements.
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