ASX 200 dives as Reserve Bank hikes interest rates; tech, real estate hardest hit

ASX suffers biggest fall in three weeks after RBA's larger than expected rate hike. Zip plunges, Magellan rebounds, Yancoal rejects 'lowball' bid and Consumer confidence dives.

Trading is expected to remain subdued until the Reserve Bank’s rate decision at 2:30pm AEST. Picture: Saeed Khan / AFP

Welcome to the Trading Day blog for Tuesday, June 7. The Australian share market suffered its biggest fall in almost three weeks as the RBA hiked the official cash rate by 50 basis points to 0.85 per cent, sparking a surge in bond yields.

The S&P/ASX 200 index closed by 110.60 points or 1.5 per cent lower to 7095.70. Year-to-date, the benchmark is down by 6.5 per cent.

In the US, stocks finished modestly higher after heavy selling in the previous session. The Dow Jones added 0.1 per cent, the S&P 500 index gained 0.3 per cent and the tech-heavy Nasdaq gained 0.4 per cent.

Among commodities, Nymex crude oil slid 0.5 per cent to $US118.24 a barrel overnight while iron ore climbed 0.6 per cent to $US145.24 a tonne

The Australian dollar was trading around US71.93c at the close of local trading.

Originally published as ASX 200 dives as Reserve Bank hikes interest rates; tech, real estate hardest hit

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