ASX roars to seven-week high after RBA rate hike to curb inflation

Stocks jump 1.7 per cent to close at a seven-week high after the Reserve Bank raised the cash rate by 25 basis points to 2.85 per cent, its seventh-straight hike in a bid to curb inflation. But Australian dollar and bond yields lost ground.

The Australian sharemarket will today react to the Reserve Bank of Australia’s latest rate hike, which experts tip will be a 25 or 50 basis point rise. Picture: NCA Newswire / Gaye Gerard

Welcome to the Trading Day blog for Tuesday, November 1. The Australian sharemarket finished 1.7 per cent higher as the Reserve Bank hiked the cash rate for the seventh time since May.

The ASX 200 closed 1.7 per cent higher at 6976.9 as the Reserve Bank hiked the cash rate by 0.25 basis points, its seventh rise since May.

Wall Street closed lower with the S&P 500 index down 0.7 per cent to 3871 points while the Nasdaq index fell 1.0 per cent to 10,988 and the Dow Jones Industrial Average index was down 0.4 per cent at 32,732 points.

US 10-year bond yields climbed to 4.05 per cent, while two-year yields were higher at 4.48 per cent.

Oil prices are lower with global benchmark Brent crude falling 1 per cent to $US94.83 per barrel and the US Nymex is down 1.6 per cent to $US86.53 per barrel.

Iron ore futures fell by 0.6 per cent to $US92.43 per tonne.

The Aussie dollar was near US63.95c at the US market close.

Originally published as ASX roars to seven-week high after RBA rate hike to curb inflation