08-07-2025
Australian shares seesaw ahead of Reserve Bank decision
The local share market has been gyrating between positive and negative territory amid tariff uncertainty and as traders wait for the latest Reserve Bank decision on interest rates.
The ASX200 began trading on Tuesday with a 17-point fall, then climbed 20.7 points into the green in the second hour of trading before sinking back slightly into the red.
At noon the benchmark S&P/ASX200 index was down 7.3 points, or 0.08 per cent, to 8,582.2, while the broader All Ordinaries was down 4.5 points, or 0.05 per cent, to 8,821.9.
analyst Kyle Rodda said markets had received a "quick punch in the guts" as Wednesday's US trade deal deadline approached.
Market participants were expecting a flurry of trade deals with trading partners, but so far only letters about tariffs on the likes of Japan, South Korea and South Africa had been announced.
But Mr Rodda added there was some merit to the idea this was all a negotiating tactic by the Trump administration designed to create urgency.
Closer to home, it is widely expected that the Reserve Bank will announce later on Tuesday afternoon that it is cutting the cash rate from 3.85 per cent.
Earlier on Tuesday, the NAB Business Survey rose to its highest level, in trend terms, in more than a year, suggesting 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.
"It is now around its long-run average."
Seven of the ASX's 11 sectors were lower at midday, with consumer discretionary, financials, telecommunications and telecommunications higher.
Consumer staples was the biggest mover, dropping 1.1 per cent as Coles subtracted 1.0 per cent and A2 Milk retreated 3.3 per cent.
In health care, Botanix Pharmaceuticals had plunged 43.6 per cent to 17.5 cents after the clinical dermatology company announced sales figures for the launch of its treatment for primary axillary hyperhidrosis, or excessive underarm sweating.
There had been 16,000 prescriptions filled for 6700 patients since February, Botanix said, apparently underwhelming investors who were hoping for far more.
In the heavyweight mining sector, BHP was down 1.1 per cent and Rio Tinto had dipped 0.8 per cent, while Fortescue had added 0.6 per cent.
In financials, three of the four big banks were higher. CBA had added 0.3 per cent, NAB was up 0.5 per cent and ANZ had advanced 0.4 per cent, while Westpac was down 0.4 per cent.
In currency, the Australian dollar was trading for 65.15 US cents, from 65.24 US cents on Monday.
