The local share market has snapped its five-day winning streak with a modest loss while quickly bouncing back from a deeper drop after the Reserve Bank raised rates for the first time since June.
The benchmark S&P/ASX200 index finished 20.3 points lower at 6,977.1, a drop of 0.29 per cent, while the broader All Ordinaries fell 15.7 points, or 0.22 per cent, to 7,176.6.
The ASX200 dropped 20 points in the space of two minutes after the Reserve Bank's mid-afternoon rate hike announcement but then nearly as quickly recouped those losses, rising 39 points in five minutes.
Capital.com market analyst Kyle Rodda said the statement accompanying the rate hike had some "slightly dovish feathering" but the risk of another hike from the RBA was plain to see.
Parsing the RBA announcement, HSBC chief economist Paul Bloxham said he thought a follow-up rate hike in December was unlikely.
"However, we see the February 2024 meeting as being in play - although our central case has them on hold," he wrote.
A quarterly comprehensive statement of monetary policy, or SOMP, that the Reserve Bank will release on Friday will give more insight into the bank's economic forecasts and projections, economists said.
Six out of the ASX's 11 sectors finished lower, with financials the biggest laggard, dropping 1.0 per cent.
Westpac fell 2.7 per cent to $21.33, ANZ dropped 1.1 per cent to $25.47, NAB retreated 1.0 per cent to $29.04 and CBA dipped 0.4 per cent to $100.01.
In the heavyweight mining sector, Fortescue was 0.6 per cent higher at $23.36 while BHP and Rio Tinto both rose 0.3 per cent, to $45.56 and $121.81, respectively.
In utilities, Origin Energy rose 1.2 per cent to $8.64 as The Australian reported that a private equity consortium led by Brookfield would launch an off-market takeover offer for the utility following AustralianSuper's moves to block the $16 billion acquisition.
In consumer staples, Inghams rose 1.3 per cent to a one-year high of $3.99 as executives told its annual general meeting in Sydney Australia's largest poultry producer was back on track after a subpar 2021/22.
"Our performance in FY23 demonstrates the breadth and momentum of the operational under way across the business, underpinned by the progressive return to normal operating performance level across farming and operations," CEO Andrew Reeves told shareholders.
In health care, Imugene soared 26.9 per cent to 6.6c following positive early signals from a clinical trial of its novel cancer-killing virus Vaxinia, which 34 patients have now been dosed with.
The Australian dollar was buying 64.33 US cents, from 65.15 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday down 20.3 points, or 0.29 per cent, at 6,977.1.
* The broader All Ordinaries dropped 15.7 points, or 0.22 per cent, at 7,176.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.33 US cents, from 65.15 US cents at Monday's ASX close
* 96.74 Japanese yen, from 97.43 Japanese yen
* 60.10 Euro cents, from 60.68 Euro cents
* 52.22 British pence, from 52.62 pence
* 108.52 NZ cents, from 108.67 NZ cents.
