The local share market snapped its losing streak, with both the All Ordinaries (INDEXASX: XAO) and S&P/ASX200 (INDEXASX: XJO) gaining 0.4% on a settling of bond yields and the latest Reserve Bank meeting minutes.
According to the new governor, the board had considered raising and now sees November as a ‘live’ meeting with the potential for a 25 basis point hike should inflation continue to print more strongly than expected.
Consumer businesses bore the brunt, with Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH) dipping 2.4% and 1.3%, respectively.
The news was worsened by a downgrade from after-market vehicle parts seller Bapcor Ltd (ASX: BAP) with shares falling more than 11% following news that sales growth in the second half had slowed to a single digit growth rate, down from the double digit levels realised in recent years.
Bapcor Ltd (ASX: BAP) share price
Healthcare remains under pressure
The healthcare remains under strong selling pressure with the likes of CSL Limited (ASX: CSL) and Resmed CDI (ASX: RMD) falling on Tuesday as investors fret the impact of weight loss drug Ozempic on their treatments.
Cochlear Limited (ASX: COH) also pulled the sector lower after flagging a $150 million profit hit on a previously undisclosed business acquisition.
Telecommunications group TPG Telecom Ltd (ASX: TPG), fresh from the blocking of its deal with Telstra Group Ltd (ASX: TLS) saw shares surge more than 5% after it was reported competitor Vocus Group Ltd (ASX: VOC) was considering an offer for its fibre business. Reports suggest a value of $6.3 billion for the unit, with both companies engaged in discussions.
It was also a positive day for iron ore, with BHP Group Ltd (ASX: BHP) adding 0.9% after the price of the commodity rose above US$120 once again following moves by the Chinese government to begin stimulating the economy.
BHP Group Ltd (ASX: BHP) share price
Dow Jones Industrial Average (INDEXDJX: .DJI) flat on strong retail sales
US benchmarks finished slightly weaker as investors digest both the latest round of quarterly earnings data and stronger than expected retail sales.
Retail sales were 0.7% higher, beating expectations of 0.6% even when stripping out car sales, which is further evidencing the strength of the underlying economy.
The result was a 0.1% gain in the Dow Jones Industrial Average (INDEXDJX: .DJI), a 0.1% fall in the S&P 500 (INDEXSP: .INX) and a 0.3% fall in the Nasdaq Inc (NASDAQ: NDAQ).
Earnings season began with a bang, as Bank of America Corp (NYSE: BAC) rallied 2% after reporting a 10% increase in profit on the back of a small increase in revenue, as client numbers across each key business grew.
Importantly, net interest income improved by 4% and global markets revenue by 10% as trading activity increased.
Goldman Sachs Group Inc (NYSE: GS) lost close to 2% as earnings fell 36%, primarily driven by a normalisation of revenue growth in its key markets and equities businesses.