Aussie shares finish flat after RBA’s shock rates call

An in-camera double exposure of pedestrians and the indicator boards at the Australian Securities Exchange (ASX) in Sydney. Photo: AAP/Bianca De Marchii

Derek Rose (AAP)
8 July 2025 5:31pm

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The local share market has finished about where it began after gyrating between positive and negative territory before and after the Reserve Bank’s surprise decision on interest rates.

The benchmark S&P/ASX200 index on Tuesday closed up 1.4 points, or 0.02 per cent, to 8,590.7, while the broader All Ordinaries rose 2.3 points, or 0.03 per cent, to 8,828.7.

The ASX200 was slightly in negative territory and then lost 27.8 points in a minute after the RBA left interest rates on hold.

But a late surge in the final minutes of trading was enough to recoup those losses.

ANZ economist Adam Boyton said while the decision was a surprise, ANZ expected the RBA would cut rates at its next meeting in August.

AMP chief economist Shane Oliver agreed, adding that delaying rate cuts by five weeks wouldn’t have a huge impact on the economic outlook and only a minor impact on shares.

Earlier on Tuesday, the NAB said its monthly survey of 340 non-farm businesses suggested that business conditions were starting to stabilise or even turn around after a disappointing start to the year.

“After a volatile but soft year for business confidence, we have seen a trend improvement over the past three months,” said NAB’s head of Australian economics, Gareth Spence.

“(Australia’s business confidence) is now around its long-run average.”

Markets were also reacting to Donald Trump’s revived trade war after the US president sent letters threatening 14 countries – including Japan, South Korea and South Africa – with tariffs of at least 25 per cent if they don’t reach an agreement with the United States by August 1.

Seven of the ASX’s 11 sectors finished lower on Tuesday, with consumer discretionary, financials, technology and telecommunications higher.

Consumer staples was the biggest mover, dropping 1.4 per cent as Coles fell similarly per cent and A2 Milk retreated 3.8 per cent.

In health care, Botanix Pharmaceuticals plunged 53.2 per cent to a year and a half low of 14.5 cents after the clinical dermatology company announced sales figures following the launch of its treatment for primary axillary hyperhidrosis, or excessive underarm sweating.

There had been 16,000 prescriptions filled for 6,700 patients since February, Botanix said, apparently severely underwhelming investors who were hoping for far more.

The plunge puts Botanix at risk of dropping out of the ASX300 at its next rebalancing in September, after just being included in the index in March.

In the heavyweight mining sector, BHP was down 0.9 per cent to $38.25, Rio Tinto dipped 0.4 per cent to $108.19 and Fortescue retreated 0.7 per cent to $16.23.

Goldminers had a good day as the previous metal changed hands at $US3,344 an ounce, with Evolution up 2.6 per cent, Newmont climbing 2.4 per cent and Vault Minerals adding 7.8 per cent, making it the biggest gainer in the ASX200.

In financials, three of the four big banks finished in the green.

CBA added 0.8 per cent to $179.28, NAB grew 0.6 per cent to $39.29, ANZ had advanced 0.3 per cent to $30.21. Westpac was the outlier, basically flat at $33.47.