ASX 200 hits six-week low after RBA hike; lithium stocks rally, utilities slump

ASX lower after the RBA's fifth straight rate hike. Lithium stocks rally, iron ore miners drop, Rio Tinto reaches Turquoise Hill deal and a smaller October rate rise tipped.

The Australian sharemarket is set to open flat on Tuesday ahead of the Reserve Bank’s decision on interest rates. Picture: NCA NewsWire / David Swift

Welcome to the Trading Day blog for Tuesday, September 6. The Australian sharemarket slumped to a six-week low after the Reserve Bank of Australia upped the official cash rate by 50bp to 2.35 per cent. 

 

The S&P/ASX 200 index lost 0.4 per cent, or 25.72 points to close at 6826.50.

US financial markets were closed on Monday for the Labor Day holiday, but European stocks tumbled and the euro hit a new 20-year low against the US dollar after Russia said it would not restart gas flows via the Nord Stream 1 pipeline.

Oil prices rose with the global benchmark Brent crude jumping 2.9 per cent to $US95.74 per barrel and the US Nymex 2.4 per cent stronger to $US88.92 per barrel.

Iron ore futures rose 3.3 per cent to $US98.47 per tonne.

The Aussie dollar is up 0.5 per cent to a two-day high of US68.33.