The S&P/ASX 200 (ASX: XJO) fell another 0.7% on Tuesday despite strong comments from the Reserve Bank of Australia Governor who confirmed interest rates would be going nowhere until at least 2024.
Every sector finished lower barring technology, which gained 0.2% during the session.
Once again the materials and energy sectors were weaker as politicians call for the US to begin consuming stockpiles.
BHP Group Ltd (ASX: BHP) fell 2.6% and Rio Tinto Limited (ASX: RIO) dropped 2.2%, with Santos Ltd (ASX: STO) also falling 0.9%.
Dovish RBA
The weakness came despite RBA Governor Philip Lowe delivering what was described as a ‘dovish’ speech on the economy, referring to the fact that he does not anticipate raising interest rates anytime soon.
During the speech, he noted that JobKeeper may well have saved Australia from the Great Resignation in the US which is seeing a jump in wages, whilst noting that every major central bank expects inflation to fall in 2022 following 2021’s supply issues.
The economy would need to turn over very differently from their central case to warrant an increase in the cash rate before 2024 he said, something that traders are betting against on a daily basis.
OZ Minerals upgrades production
Copper and gold miner OZ Minerals Limited (ASX: OZL) fell 0.7% on broader mining sector weakness despite announcing an increase in its finite reserves.
The group increased its copper reserve estimates by another 5% to 10.3 million tonnes, with the company having seen an electric vehicle driven tailwind in 2021.
Capitol Health rises
Medical imaging provider Capitol Health Ltd (ASX: CAJ) was among the market leaders, jumping over 7% after announcing it would be targeting a significant improvement in margins in 2022 and would pursue accretive bolt-on acquisitions in the sector.
Revenue increased 9.7% to October 31 compared to 2020 levels and the company delivered $25 million in free cash flow.
Resimac loans surge
Non-bank lender Resimac Group Ltd (ASX: RMC) fell 2% despite reporting record home loan growth which was 72% higher during the quarter, reaching $2.5 billion.
The loan book is growing at a 15% clip and recently exceeded $14.5 billion. Management expects profit to remain steady on 2020 levels should financial markets remain ‘stable’.
Creso Pharma shares halted
Finally, shares in cannabis product producer Creso Pharma Ltd (ASX: CPH) fell nearly 10% before being placed in a trading halt amid news that the Chairman’s company has been hit with an investigation by ASIC.
ASX 200 today
In more positive news, the ASX 200 is expected to open higher on Wednesday after all three US benchmarks gained overnight. To find out more, check out my US stock market report.
