Australian shares flat after NZ's hawkish surprise

The share market finished the day relatively flat despite some major movements among stocks. (Steven Saphore/AAP PHOTOS)

The Australian share market has given up its early gains to finish basically unchanged after central bankers across the ditch pushed back the timing of interest rate cuts.

The benchmark S&P/ASX200 index on Wednesday finished down 3.6 points, or 0.05 per cent, to 7,848.1, while the broader All Ordinaries dropped 1.9 points, or 0.02 per cent, to 8,118.3.

The ASX200 had been up by as much as 0.35 per cent around midday but gave up those gains after the Reserve Bank of New Zealand's latest decision on interest rates.

As was widely expected, the RBNZ left interest rates unchanged at 5.5 per cent, but unexpectedly said it had considered a rate hike and pushed back the timing of cuts from the second to the third quarter of next year.

Nomura analysts Andrew Ticehurst and David Seif were among commentators describing it as a surprise, although they didn't entirely buy the degree of hawkishness suggested by the RBNZ's statements.

Four of the ASX's 11 sectors finished lower and six were higher, with health care basically flat. 

Telecommunications was the biggest mover, dropping 2.5 per cent as Telstra fell 4.2 per cent to a nearly three-year low of $3.42 following the company's announcement of 2,800 job layoffs on Tuesday.

Eagers Automotive was the biggest loser in the ASX200, sinking 15 per cent to a nearly two-year low of $10.36 after the auto dealer said it expects to earn 15 per cent less profit in the first half than it did in 2023.

"We are a consumer-facing business and therefore not immune from the well-documented economic conditions - including inflation, interest rates and cost-of-living pressures - which impact consumer spending," chairman Timothy Crommelin told the company's annual general meeting in Brisbane.  

On the flip side, Webjet soared 7.7 per cent to a four-year high of $9.09 after the travel company said it was considering separating its WebBeds business-to-business marketplace for the travel trade from its consumer travel agency.

Any demerger would be completed during 2024/25 and both companies would be listed on the ASX, Webjet said. 

Technology One climbed another 6.6 per cent to a fresh closing all-time high of $17.86, adding to Tuesday's gains following the Brisbane software-as-a-service's well-received earnings report.

The Big Four banks were mixed, with ANZ up 1.1 per cent to $28.62 and NAB adding 0.2 per cent to $34.79, while Westpac was flat at $27.07 and CBA fell 0.2 per cent to $121.50.

In the heavyweight materials sector, Fortescue gained 1.1 per cent to $27.30, Rio Tinto climbed 1.6 per cent to $136.17 and BHP rose 0.4 per cent to $46.24 as the clock ticked down for the Big Australian to make a firm offer for Anglo American.

Under a provision in British takeover rules, BHP has until 2am AEST on Thursday to make a binding offer or walk away for at least six months.

Traders were also waiting for AI chipmaker Nvidia's earnings report, which should be delivered around 7.30am AEST on Thursday and could be a key catalyst for markets around the world.

The Australian dollar was buying 66.62 US cents, from 66.56 cents at Tuesday's ASX close.

ON THE ASX:

* The benchmark S&P/ASX200 closed on Wednesday down 3.6 points, or 0.05 per cent, to 7,848.1.

* The broader All Ordinaries dropped 1.9 points, or 0.02 per cent, to 8,118.3.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 66.62 US cents, from 66.56 US cents at Tuesday's ASX close

* 104.13 Japanese yen, from 103.97 Japanese yen

* 61.32 Euro cents, from 61.31 Euro cents

* 52.25 British pence, from 52.37 pence

* 108.90 NZ cents, from 109.34 NZ cents. 


 

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store